The S&P 500 and Nasdaq saw a significant climb on Friday, largely driven by the gains made by chipmakers in the market. The tech-heavy Nasdaq came close to hitting its all-time intraday peak, thanks to a record closing high in the previous session. The surge in the index has been attributed to the AI frenzy sparked by chip designer Nvidia’s positive forecast. Shares of Nvidia rose by 3.4%, while its rival Advanced Micro Devices saw a gain of 3.8% to a new record high. The broader Philadelphia semiconductor index also reached an all-time peak on the back of these gains.
Market Indicators
The rally on Wall Street was further fueled by a drop in Treasury yields following softer economic data. The dip in yields came after a report showed that U.S. manufacturing had slumped further in February. This, combined with remarks from Federal Reserve officials, maintained the expectations that the Fed could potentially cut interest rates in the near future. Despite the mixed economic data, the market seems to be responding positively to the overall stability in business conditions.
Investors are closely following the comments made by Fed officials, including Fed Governor Chris Waller and Richmond Fed President Thomas Barkin. Waller emphasized that the central bank’s decisions regarding its balance sheet size will not impact its fight against inflation. On the other hand, Barkin suggested that it is premature to speculate on when the Fed might start cutting rates. As of midday trading, the Dow Jones Industrial Average was slightly down, while the Nasdaq Composite and the S&P 500 were both up, signaling a mixed sentiment in the market.
Market Performances
The S&P 500’s energy sector emerged as the top performer on Friday, with a 1.5% increase. However, some individual stocks saw significant movements, with New York Community Bancorp plunging by 25.9% due to internal control issues related to its loan review. On the other hand, Dell Technologies experienced a notable 25.6% jump after forecasting revenue and profit figures above Wall Street’s estimates.
The Dow Jones faced pressure from a 1.1% decline in Boeing shares following reports of the planemaker being in talks to acquire supplier Spirit AeroSystems. Despite some setbacks in individual stocks, the overall market sentiment remained positive, with advancing issues outnumbering decliners on both the NYSE and Nasdaq exchanges. The S&P index and Nasdaq also witnessed a significant number of new highs, indicating the overall bullish trend in the market.