Stock Market Today: S&P 500 Hits Record High on Nvidia Rally
Record High for S&P 500
The S&P 500 closed at record highs Thursday, after Nvidia’s blowout earnings reinforced investor optimism in the artificial-intelligence boom, leading to a sea of green across tech stocks.
Nvidia’s Influence on Tech Stocks
At 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 456 points, or 1.2%, while the S&P 500 rose 2.1% to close at a record high of 5,085.96. The Nasdaq climbed 3%.
Nvidia’s Strong Q4 Results and Outlook
Nvidia stock jumped over 16%, closing at fresh record highs after the world’s most valuable chipmaker reported strong Q4 results and forecast first-quarter revenue at about $24 billion, more than what analysts were expecting.
Impact on Other Chipmakers
Other chipmakers jumped on the Nvidia bandwagon, with TSMC, Micron Technology, and Intel in the ascendency.
Boost in AI Demand
Nvidia, a barometer of AI demand, reinforced expectations that the AI boost is here to stay, stoking bullish bets across megacap tech including Alphabet, Microsoft, and Meta Platforms, all of which posted healthy gains.
Performance of Moderna, Etsy, Rivian, and Royal Caribbean
Moderna closed nearly 14% higher after reporting a surprise fourth-quarter profit. Etsy fell more than 8% after the e-commerce firm reported mixed earnings and softer guidance. Rivian Automotive fell nearly 26% after its production for 2024 fell short of estimates. Royal Caribbean stock rose more than 7% after the cruise operator raised its full-year income forecast.
Treasury Yields and Labor Market
Treasury yields were sharply higher following fresh signs of strength in the labor market as the number of Americans filing for unemployment benefits unexpectedly fell last week, the Labor Department reported Thursday.
The data added fresh doubt on the sooner rather than later rate cuts and came just a day after the Fed reinforced the central bank’s stance on keeping interest rates elevated in the near-term.
Federal Reserve Vice Chair Philip Jefferson said Thursday he was “cautiously optimistic” about the Fed’s ability to rein in inflation back down to its 2% target.
If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back our policy restraint later this year,” he added.
Elsewhere on the economic front, activity picked up pace in February, but employment slowed.
