Wall Street Today | Nasdaq, S&P 500 Build on Record-Breaking Rally Fueled by AI
RECAP
There's no stopping the AI-fueled rally in the stock market.
The $Nasdaq Composite Index(.IXIC.US$ climbed to an all-time high for a second day, building on gains this year, buoyed by tech stocks and semiconductor makers. The gauge closed 1.1% higher at 16,274.94. The $S&P 500 Index(.SPX.US$ rose 0.80% to 5,137.08, its first close above 5,100. The $Dow Jones Industrial Average(.DJI.US$ ended the day up 0.2% to 39,087.38.
The $Nasdaq Composite Index(.IXIC.US$ climbed to an all-time high for a second day, building on gains this year, buoyed by tech stocks and semiconductor makers. The gauge closed 1.1% higher at 16,274.94. The $S&P 500 Index(.SPX.US$ rose 0.80% to 5,137.08, its first close above 5,100. The $Dow Jones Industrial Average(.DJI.US$ ended the day up 0.2% to 39,087.38.
$NVIDIA(NVDA.US$, the best performer among the Magnificent Seven stocks that propelled the market higher last year, saw its shares climb 4%, taking its market capital above $2 trillion for the first time ever. The company behind the most powerful chips used in artificial intelligence has kept on breaking its own record this year.
MACRO
Fed is in No Hurry
Tom Barkin, Federal Reserve Bank of Richmond president and a voter in Fed rate decisions told CNBC that policy makers are in no hurry to cut rates, reiterating that officials that economic data will remain the primary driver of interest rate decisions. Still, there are signs that such a move could come sooner.
The St. Louis Fed GDP Nowcast growth estimate for the first quarter has slowed to 0.92%, from 1.4% a week earlier. The Atlanta Fed GDPNow model is now seeing a growth rate of 2.1% as of March 1, down from 3.0 percent on Feb 29.
Fed Chairman Jerome Powell has said policymakers would want to be ahead and start cutting rates before any substantial slowdown is seen in the economy.
The St. Louis Fed GDP Nowcast growth estimate for the first quarter has slowed to 0.92%, from 1.4% a week earlier. The Atlanta Fed GDPNow model is now seeing a growth rate of 2.1% as of March 1, down from 3.0 percent on Feb 29.
Fed Chairman Jerome Powell has said policymakers would want to be ahead and start cutting rates before any substantial slowdown is seen in the economy.
Computer hardware stocks tracked by moomoo climbed 11%, the best performing sector Friday. The jump was driven mainly by $Dell Technologies(DELL.US$'s 32% gain and NetApp's 18% jump.
SECTORS
Gold Hits Record
Gold soared to a record amid signs that weak economic data could prompt Fed rate cuts, boosting the appeal of the precious metal that doesn't give holders any income. The ISM manufacturing index fell to 47.8 in February, digging deeper below the 50 level that delineates between contraction and expansion. The data missed consensus forecast for a 49.5 reading. Construction spending and consumer sentiment also fell.
Crude oil advanced amid expectations that the Organization of Petroleum Exporting Countries and its allies will roll over their voluntary production cuts into the second quarter, curbing supply.
COMPANIES
Dell's Dividend Boost
$Dell Technologies(DELL.US$ shares soared after the technology boosted its dividend by 20% and reported fourth quarter earnings and revenue that beat analysts' estimates, helped by artificial intelligence. The rally also spurred increased trading in the stock's options.
NetApp's Earnings Beat
$NetApp(NTAP.US$ shares climbed, leading gains on the S&P 500, after the data-centric software company company reported fiscal third quarter results and issued fiscal year 2024 adjusted earnings per share guidance that beat estimates.
Plug Power's Cash Hoard
$Plug Power(PLUG.US$ shares joined the rally, climbing more than 10% as the company said it has enough cash to fund its operations "for the foreseeable future," and there's no longer any "substantial doubt" about its ability to continue.
Fisker's Going Concern
There are also many stocks which weren't invited to the party. $Fisker(FSR.US$ shares tanked 34% after the electric-vehicle start-up released fourth quarter financial results that flagged a "going concern" warning. The company ended the previous year with almost $400 million in cash, just $100 million above money analysts expect it to use in 2024, according to FactSet estimates reported by Barron's.
Source: Bloomberg, Dow Jones, CNBC, Reuters
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
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affable Blobfish_403 : Are retail investors entering the market in large numbers?
yfuwong : Ai is unstoppable
exera : $Plug Power (PLUG.US)$ Maybe it's over
103586209 : good