The Santa Claus rally rolls on as the S&P 500 notches its seventh consecutive week of gains. This marks the longest winning streak since 2017, according to Dow Jones data. Â
Last week, the S&P 500 surged 2.5% to 4,719. At the close of the market on Friday, it was just 78 points shy of its all-time high of 4,796 set on Jan. 3, 2022. Since November 1, the S&P 500 has climbed 12.5%, with a 3.3% increase since December 1.
The Dow Jones Industrial Average also had an impressive week, jumping 2.9% to reach an all-time high of 37,305. Meanwhile, the Nasdaq posted a solid gain of 2.8%.
For the year, the Nasdaq has seen a 41% year-to-date increase, the S&P 500 is up 23% YTD, and the Dow has risen 12% in 2022.
The Federal Reserve’s decision to hold interest rates steady for the third consecutive meeting was the major catalyst for last week’s gains. This has fueled optimism that the tightening cycle has ended. Here are the biggest gainers on the S&P 500 from last week.
1. Enphase Energy, up 20.3%
Enphase Energy (NASDAQ: ENPH) has experienced significant volatility, dropping nearly 53% since the beginning of the year. However, the stock has surged around 63% since November 1 and is currently trading at approximately $124 per share. Enphase was the top performer in the S&P 500 last week, skyrocketing 20.3%.
One of the driving forces behind this surge was the announcement of a $3.5 billion grant from the Department of Energy to promote domestic battery storage production. However, the recent upswing has been largely attributed to the Fed, and last week was no different.
Enphase is a clean-energy company that generates most of its revenue from microinverters for residential solar panels and battery-storage systems. High interest rates have been detrimental for Enphase, increasing the company’s borrowing costs and making loans and leases for solar panels more expensive due to the overall market impact of high interest rates.
Therefore, the Fed’s decision to keep rates steady for the third consecutive meeting, and to indicate via its dot plot that there will likely be three rate decreases in 2024 and more in 2025, was positive news for Enphase.
2. Broadcom, up 19.6%
Broadcom (NASDAQ: AVGO) has been on a tear all year, with its stock surging around 102% year to date. Last week, it gained 19.6%, reaching $1,130 per share after finishing the previous week at $944 per share. Broadcom is a semiconductor and software company that manufactures semiconductors for data center switches and routers, among other products. Its stock has risen since the company reported strong fourth-quarter earnings on Dec. 7.
Broadcom boasted a 4% year-over-year revenue gain and an 8% revenue increase for fiscal 2023, totaling $35.8 billion. Its net income in the quarter rose 4.9% to $3.5 billion, or $8.25 per share, and for the year,
