US Markets
Thursday, February 22nd, 2024 6:45 pm EDT
Key Points
- The S&P 500 surged to an all-time high following Nvidia’s much stronger-than-expected quarterly results, which lifted the broader tech sector. The index traded nearly 2% higher, while the Nasdaq Composite advanced about 2.7%, marking its biggest one-day gain since February 2023. Additionally, the Dow Jones Industrial Average surged 388 points, surpassing 39,000 for the first time ever, and putting the major averages on track to break a three-day losing streak.
- Shares of Nvidia jumped nearly 15% to an all-time high after the chip company reported a remarkable 265% year-on-year increase in total revenue, driven by its booming artificial intelligence business. Nvidia’s forecast for another stellar revenue gain for the current quarter further contributed to the positive sentiment across the tech industry. Other tech giants, including Facebook parent Meta, Amazon, Microsoft, and Netflix, also experienced gains, reflecting the overall strength in the sector.
- The tech sector’s notable performance, with a 4% increase, marked its best daily performance since May 2023, potentially signaling a break from a four-day losing streak and putting it on track for its sixth positive week in seven weeks. However, the Dow saw restricted gains compared to other major indexes, partially due to lagging members such as Walgreens and Nike. Nonetheless, notable gains were seen elsewhere, with stocks like Salesforce, Visa, and IBM leading the index higher, counterbalancing some of the losses.
The S&P 500 reached an all-time high on Thursday following Nvidia’s exceptional quarterly report, which significantly exceeded expectations and drove a surge in the broader tech sector. Nvidia’s shares soared nearly 15% to a record high after reporting a remarkable 265% year-on-year increase in total revenue, primarily fueled by its booming artificial intelligence business. The company’s strong performance, coupled with its optimistic revenue forecast for the current quarter, contributed to positive sentiment across the tech industry, with other major players like Meta, Amazon, Microsoft, and Netflix also experiencing gains. Analysts attribute this rally to the enthusiasm surrounding artificial intelligence, which has propelled Nvidia and other tech giants over the past year, potentially boosting confidence in the sector and the broader market. However, some caution that the market rally, particularly driven by Nvidia’s success, carries inherent risks, especially considering the high expectations and valuations of mega-cap U.S. stocks. Despite the market’s buoyancy, concerns linger about the possibility of stocks dropping if economic growth becomes reflected in higher bond yields. Meanwhile, the technology sector recorded its best performance since May 2023, with a 4% increase, driven by notable gainers such as Micron Technology, Synopsys, and Cadence Design Systems. While the Dow Jones Industrial Average saw more restrained gains compared to other major indexes, the broader market’s ascent was tempered by some lagging members, including Walgreens and Nike. On a positive note, Salesforce led the index higher with a 3.5% rally, while Visa and IBM also experienced significant gains. In midday trading, Nvidia, Rivian, and Moderna were among the stocks making the most significant moves, with Nvidia rallying 15% after its impressive fiscal fourth-quarter results. Additionally, European stocks closed at a record high, driven by solid economic data showing some improvement in Eurozone business activity in February.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/21/stock-market-today-live-updates.html
