4:05pm: Nasdaq fizzles
The three major US indexes finished Friday's trading session mixed. The Dow Jones finished the day only modestly higher after seeing bigger gains earlier in the day driven by AI chipmaker Nvidia’s upbeat earnings report, adding 02% at 39,131 points – a new record.
The S&P 500 closed 0.04% higher at 5,088 points, also a new record, and the Nasdaq shed 0.3% at 15,996 points.
12:15pm: Stocks Lose Steam After Nvidia's Record Surge
US stocks were showing by midday after a record-breaking surge earlier in the week driven by Nvidia's impressive earnings.
While the Dow Jones Industrial Average managed a slight increase of 0.4%, the S&P 500 dipped just below the flatline, and the Nasdaq Composite slipped by 0.4%.
While Nvidia's market value soared by approximately $277 billion, marking the largest single-day gain in Wall Street history, its shares retreated into negative territory as trading progressed.
Investor focus also turned to the possibility of a US interest rate cut, with Federal Reserve officials hinting at future cuts, though the timing remains uncertain.
With fourth-quarter earnings season winding down, fintech company Block saw a significant surge in its shares following an optimistic earnings forecast, jumping by 16%.
Similarly, used-car seller Carvana experienced a spike of approximately 30% in its stock price as investors welcomed the company's first annual profit.
10:35am: Nvidia clears US$2 trillion but analysts have questions
Nvidia jumped around 1.5% to reach a US$2 trillion valuation, the first chip maker to ever achieve the feat.
The gains are helping propel the Dow Jones around 200 points higher, while the S&P 500 and the Nasdaq are up 15 and 2 points, respectively.
Kathleen Brooks, research director at XTB, said: "The record stock market rally for Nvidia stocks makes us shudder to think what would have happened if the chip maker had delivered weak earnings or weaker forecasts.
"However, while we doubt that Nvidia is going to continue adding $200bn + to its market cap in a single day, AI is a key theme for markets right now.
"We don’t know if Nvidia is in a bubble or not, and anyone who says they know the answer – don’t believe them. But when one stock dominates, questions should be asked.
"For example, is it justified that Nvidia’s market cap is many times that of Exxon Mobil, even though hydrocarbons are still essential to everyday life, and AI requires a huge amount of power at this stage of its evolution?
"And is the AI trade a bet on the speed of Big oil’s demise or is it merely collateral damage as investors pile in to get a slice of the AI pie?"
9:43am: Wall Street rally continues as Nvidia targets US$2 trillion
Wall Street has opened higher on Friday, keeping going the good fortunes brought along by Nvidia's record gains.
The Dow Jones is trading around 120 points higher at around 39,200, while the S&P 500 is up 20 points to 5,100.
The Nasdaq Composite lifted around 75 points higher to over 16,100.
Nvidia is still defying expectations as its shares opened 4% higher, building on the US$270 billion added on Thursday.
The gains mean it's on track to become the first chip maker to have a US$2 trillion valuation
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
$NVDA shareholders celebrating as they cross $2T in market cap pic.twitter.com/VKHSI8TBXX
— Ticker History ???? (@TickerHistory) February 23, 2024
8:00am: Wall Street to feel hangover after Nvidia's historic session
Wall Street is set to open around slightly higher on Friday, building on Thursday's record gains from Nvidia, which saw all US indices close at record highs.
The Dow Jones is set to open around 60 points higher at around 39,100, while the S&P 500 is looking to begin trading 4 points higher at around 5,100.
The Nasdaq is expected to slide around 3 points at around 18,000 when markets open.
Nvidia added US$270 billion on Thursday, the largest single-session value gain in market history and Friday is expected to see the rally continue with pre-market trading pushing the AI chipmaker up around 2%.
Over in the UK, Polar Capital Technology Trust hit a new all-time high and other investment trusts including Scottish Mortgage Investment Trust PLC and Manchester & London Investment Trust plc enjoyed strong gains on Thursday after Nvidia's blowout results overnight.
The pair are two of the 13 London-listed investment trusts that have large holdings in the US semiconductor giant.