New York, NY (February 24, 2024): The three major US stock indexes closed Friday with mixed results, despite a record-breaking day for chipmaker Nvidia.
- Dow Jones Industrial Average: Up 0.2% at 39,131 points, a new all-time high.
- S&P 500: Up 0.04% at 5,088 points, also a new record.
- Nasdaq Composite: Down 0.3% at 15,996 points.
Nvidia’s Rollercoaster Ride:
- The market initially rallied on Nvidia’s strong earnings report, pushing its stock price up and briefly propelling its market value to a historic $2 trillion, the first chipmaker to achieve this feat.
- However, the euphoria faded as the day progressed, and Nvidia’s shares closed in negative territory.
Investor Focus Shifts:
- With Nvidia’s impact subsiding, investors turned their attention to the possibility of future interest rate cuts by the Federal Reserve, although the timing remains unclear.
- Other notable companies saw significant gains:
- Block (fintech): Up 16% following an optimistic earnings forecast.
- Carvana (used car seller): Up 30% after reporting its first annual profit.
Analyst’s Take:
- Kathleen Brooks, research director at XTB, expressed concern about the reliance on a single stock and the potential bubble surrounding AI-related companies, questioning the long-term sustainability of such trends.
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Following Thursday’s record-breaking close, Wall Street opened Friday on a positive note, continuing to ride the wave of optimism sparked by Nvidia’s impressive earnings report.
This week’s #chartoftheweek looks at Nvidia’s performance relative to the S&P and the Magnificent 7 this year, after their knockout earnings release this week.
NVDA reported record revenue growth after the bell on Wednesday – with FY24 revenue coming in up 126% Y/Y. The stock… pic.twitter.com/jbHiAbO6ZD
— FactSet (@FactSet) February 23, 2024
- The Dow Jones climbed 120 points to near 39,200, while the S&P 500 gained 20 points to reach 5,100.
- The Nasdaq Composite defied pre-market predictions, surging 75 points past 16,100.
Nvidia continued its remarkable run, defying expectations by opening 4% higher. This upward trend puts it on track to become the first chipmaker to surpass the coveted $2 trillion valuation mark.
Global Ripple Effect:
The impact of Nvidia’s performance went beyond Wall Street. In the UK, Polar Capital Technology Trust soared to a new all-time high, while other investment trusts with significant holdings in Nvidia, like Scottish Mortgage and Manchester & London, also witnessed substantial gains on Thursday.
Combined, these developments showcase the widespread influence of Nvidia’s success and its potential to continue shaping global markets.
This revised text incorporates the new information while avoiding duplication with the previous segment. It emphasizes the continuation of the positive trend and highlights the global impact of Nvidia’s performance.
