S&P and Dow Inch Higher, Nvidia’s Market Cap Surpasses
On February 23, the S&P 500 and Dow Jones Industrial Average managed to sustain gains, maintaining a positive trajectory for the week, despite a slowdown in momentum from the recent market rally. The week saw a surge in interest around artificial intelligence (AI), contributing to Nvidia, a notable player in the AI sector, achieving a historic milestone by surpassing a market valuation of $2 trillion for the first time.
In the previous session, both the S&P 500 and Dow posted record high closes, and Nvidia experienced a remarkable gain of $277 billion in stock market value – the largest single-day increase in Wall Street history. This surge was propelled by Nvidia’s robust forecast, instilling confidence among investors.
In Friday’s trading, Nvidia’s shares exhibited a 1.7% increase during early-afternoon trade, following a period of volatile early trading as investors absorbed the substantial gains from the prior session.
However, not all tech and growth stocks sustained their momentum from the AI-driven rally. Apple saw a 0.9% decline, while Tesla fell by 2%. Another beneficiary of the AI frenzy, Super Micro Computer, experienced a notable drop of 12.4% following the pricing of its convertible notes.
As of 1:57 p.m. ET, the Dow Jones Industrial Average was up 90.97 points (0.23%) at 39,160.08, and the S&P 500 had advanced 8.96 points (0.18%) at 5,095.99. The Nasdaq Composite was marginally lower, down 3 points (0.02%) at 16,038.60.
The S&P 500 and Dow seemed poised for yet another record closing high, and attention turned to whether the Nasdaq could surpass the all-time high reached in November 2021. The majority of S&P sectors showed positive movement, with utilities, materials, and industrials all registering gains of more than 0.6%.
Carvana experienced a significant surge of 31.3% after reporting its inaugural annual profit, driven in part by a debt reduction pact with bondholders amounting to $1 billion. On the other hand, Warner Bros Discovery faced a 9.3% decline following the disclosure of a larger-than-expected quarterly loss, attributed to the challenges posed by Hollywood strikes on content production.
Block, led by Jack Dorsey, witnessed an 18.2% jump after the payments firm provided a favorable forecast for adjusted core earnings in the current quarter, surpassing Wall Street estimates and demonstrating confidence in consumer resilience.
