- Dow Jones closes 91 points higher
- S&P, Nasdaq reach higher
- Dell rallies 24% on AI-focused Q4 update
4:15pm: Nvidia becomes first tech company to surpass $2T
In a roaring start to March on Wall Street, stocks surged to new heights, propelled by encouraging inflation figures and an unyielding surge in the tech sector.
The S&P 500 hit another record high, marking its 16th ascent in 18 weeks, gaining 0.8% on the day to close at 5,137.
The Dow Jones Industrial Average also edged up 0.2% to finish at 39,087, while the Nasdaq notched its second consecutive day of record highs with a 1.1% gain to close at 16,275.
Investor sentiment received a boost from PCE data revealing a continued moderation in inflation, allaying fears of imminent interest rate hikes by the Federal Reserve. However, a closer look at the numbers hinted at lingering "sticky" inflationary pressures, posing potential challenges ahead.
Amidst the market flurry, Nvidia stole the spotlight, becoming the first tech company to surpass a $2 trillion valuation.
On the flipside, New York Community Bancorp suffered a steep 26% decline following the departure of its CEO, coupled with dismal quarterly earnings and concerning findings regarding its loan processes.
Dell, on the other hand, soared by 31% on the heels of robust quarterly performance, fueled by burgeoning AI prospects in server sales.
Looking ahead, earnings reports from major players like Target, Costco, and Box are anticipated to sustain Wall Street's bullish sentiment, as optimism remains buoyant. However, as February's jobs report looms, Fed officials will closely scrutinize economic indicators, gauging growth resurgence against lingering inflation concerns. With rate cuts potentially on hold until June, the Fed's forthcoming policy meeting promises to be pivotal for market trajectory, while data on job openings offers insights into the labor market's resilience and job seeker confidence.
12:15pm: Stocks extend record rally
The Nasdaq had led US indices into the green by midday Friday to start the month on another high note.
At noon, the S&P 500 had gained 0.5%, hitting another all-time intraday high of 5,125 points and building on its strongest February performance in nearly 10 years.
Elsewhere, the Dow Jones Industrial Average edged up 0.2% at 39,068, while the Nasdaq advanced 0.8% at 16,222.
Investors greeted March with enthusiasm after the Personal Consumption Expenditures (PCE) data revealed a continued cooling of inflation, alleviating concerns about potential interest rate hikes by the Federal Reserve. However, closer examination suggests persistent "sticky" inflation, presenting a challenge for policymakers.
In notable movements, New York Community Bancorp (NYCB) shares plummeted by 27% in morning trading after the abrupt departure of its CEO, a reported $2.7 billion quarterly loss, and the identification of "material weaknesses" in the bank's loan processes. Conversely, Dell (DELL) shares surged by 33% following quarterly sales and profit figures that surpassed expectations, driven by the company's optimistic prospects in artificial intelligence (AI) for its servers.
10:01am: Wall Street opens flat as manufacturing output ticks higher
Wall Street opened relatively flat on Friday, with the Dow Jones around 68 points lower, while the S&P 500 and the Nasdaq are up by 2 points and 26 points respectively.
In macro news, US manufacturing PMI figures came in at 52.2 points for February, building on January's 50.7 and improving on forecasts of 51.5.
In equities, Dell opened around 24% higher after its fourth-quarter earnings saw both revenue and profits beat Wall Street estimates as it continues to benefit from the rise of AI.
New York Community Bankcorp is down around 25% after its fourth-quarter update came with the exit of its CEO and the tenfold increase of losses to US$2.7 billion.
Other movers include Braodcom (+4%), Zscaler (-10%), Xcel Energy (-5%), Micron Technology (+3%), NetApp (+25%) and Las Vegas Sands (-6%).
8:21am: Wall Street to open flat after record February
Wall Street is set to open relatively flat on Friday, with the Dow Jones around 15 points higher at 38,960, while the S&P 500 is stuck at 5,104.
Nasdaq's lead index is trading around 19 points at 18,102.
The indexes begin March after a bullish February, which saw both the Nasdaq and S&P 500 reach record highs, largely driven by the huge gains of tech companies like Nvidia, which rallied 25% last month.
Leading the pre-market movers are Adial Pharmaceuticals, which rallied 94% on the back of receiving a patent to treat opioid use disorder, Marathon Digital (-16.53%) and Advanced Micro Devices (+9%).
Also making a stir in the US is news that lawyers on behalf of Elon Musk filed a civil lawsuit against ChatGPT developer OpenAI and its founders.
Musk alleges that the founding principles of OpenAI as an organisation that would develop artificial general intelligence (AGI) “for the benefit of humanity” have been lost in favour of maximising shareholder profits.