Technology stocks led the S&P 500 to a significant milestone and a fresh record on Friday, marking the first time the broad index closed above 5000 points.

This rally reflects an unexpected robustness in the economy, instilling confidence in investors that they can capitalize on riskier assets and achieve gains even in the face of high interest rates.

The tech-heavy Nasdaq Composite Index surged by 1.2% on Friday, bringing its year-to-date rise to 6.5%. Meanwhile, the Dow Jones Industrial Average experienced a slight dip of 0.1% or about 55 points on Friday, yet it remains up by 2.6% for the year. The S&P 500 concluded the week with a 1.4% gain, closing at approximately 5027 points after a 0.6% climb on Friday. Overall, the index has seen a 5.4% increase in 2024.

Remarkably, each of these indexes has experienced gains in 14 out of the past 15 weeks—a streak not seen since March 1972 for the S&P 500 and since the 1990s for the Dow and Nasdaq.

Concerns about a potential recession loomed following the Federal Reserve's decision to raise interest rates to levels not seen in decades in an effort to curb inflation. However, a robust jobs report last week underscored the enduring strength of the labor market, while corporate earnings have continued to grow despite inflationary pressures easing. 

This resilience has bolstered investor sentiment. “We bleed upwards without any reason to go down,” remarked Matthew Tuttle, chief executive officer of Tuttle Capital Management. Looking ahead, investors await fresh insights into inflation with the upcoming release of consumer price data on Tuesday, followed by retail sales data on Thursday and supplier prices on Friday.

John Augustine, chief investment officer at Huntington Private Bank, noted that despite lingering anxieties, his firm is capitalizing on the potential for rate cuts by reallocating profits from bonds to stocks ahead of the Fed’s meeting in March. He anticipates a surge in cash from money-market accounts, attracted by their 5% yields, flowing into stocks once the central bank signals a shift in policy.

Meanwhile, Randy Watsek, a financial adviser with Birch Lane Group of Raymond James, emphasized the abundance of attractive stocks for long-term investors amidst solid earnings growth.

On Friday, high-priced shares of major technology companies spearheaded the market's upward trajectory.