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Stock Market Today: S&P 500 in record close as Nvidia rally keeps bulls in control

Published 02/21/2024, 06:49 PM
Updated 02/22/2024, 04:10 PM
© Reuters

Investing.com-- The S&P 500 closed at record highs Thursday, after Nvidia's blowout earning reinforced investor optimism in artificial-intelligence boom, ushering in a sea of green across tech stocks.  

At 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 456 points, or 1.2%, S&P 500 rose 2.1% to close at a record high of 5,085.96. The Nasdaq Composite climbed 3%.

Nvidia lifts tech after strong Q4 results, outlook  

Nvidia (NASDAQ:NVDA) stock jumped over 16% closing at fresh record highs after the world’s most valuable chipmaker reported stronger-than-expected fourth quarter earnings, and forecast first quarter revenue at about $24 billion, more than what analysts were expecting. 

The stronger guidance "implies solid growth off the higher number again fueled by the velocity of NVDA's datacenter business," Wedbush said in a note as it upgraded its price target on the stock to $850 from $800.

Other chipmakers jumped on the Nvidia bandwagon, with TSMC (NYSE:TSM) Micron Technology (NASDAQ:MU) and Intel (NASDAQ:INTC) in the ascendency. 

Nvidia, a barometer of AI demand, reinforced expectations that the AI boost is here to stay, stoking bullish bets across megacap tech including Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) all posted healthy gains, with all three having AI products in the pipeline. 

Moderna posts surprise profit, Etsy, Rivian disappoints on earnings stage, but Royal Caribbean shines 

Moderna (NASDAQ:MRNA) closed nearly 14% higher after reporting a surprise fourth-quarter profit as cost cutting helped offset weaker  

Etsy (NASDAQ:ETSY) fell more than 8% after the e-commerce firm reported mixed earnings and softer guidance that underscore the tough economic backdrop and competition in the e-commerce landscape, Wedbush said.  

Rivian Automotive (NASDAQ:RIVN) fell nearly 26% after it production for 2024 that fell short of estimate as electric vehicle manufacturer grapple with waning demand. The EV maker is set to launch its R2 compact SUV in March, which will be important, RBC said, as the investment case on the stock "relies on this higher volume, affordable product."

Royal Caribbean (NYSE:RCL) stock rose more than 7% after the cruise operator raised its full-year income forecast, saying it has been encouraged by both the "demand and pricing environment" in 2024.

Treasury yields rise on signs of strong labor market 

Treasury yields were sharply higher following fresh signs of strength in the labor market a the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, the Labor Department reported Thursday. 

The data added fresh doubt on the sooner rather later rate cuts and came just a day after the Fed minutes 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" in 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, manufacturing activity picked up pace in February, but  services slowed. 

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

One single stock reporting $20 billion of revenue caused the stock market to add nearly $1 trillion of valuation in under 24 hours. This is worse than 2000.
Trump had record stock market with low inflation and zero interest rates with stock gains across multiple sectors and a strong dollar. Biden has had high inflation and rising interest rates that they cannot bring down, and just 7 bloated stocks control the entire economy. NVDA had only $20 billion of revenue but has a market cap of $2 trillion right now. NVDA has a market cap greater than every stock in the Chinese stock market combined.
trumps a d bag
 Is that what the TV told you to think while the economy was going great and he kept us out of wars, then your demented potato came in and has already gotten us into 3 wars and 20% inflation.
Bidenomics: Running the national debt up to $34 trillion with 20% inflation of the course of 4-years with most people struggling to pay their rent and food bills, while virtually the entire stock market is composed of just 7 stocks that have massively bloated P/Es, the most recent of which Nancy Pelosi happened to buy a stake in just prior to it moving up 70% in 2 months.
sell videocards (contracts for videocards) for 2 billions more and get + 300 billions of cap. good business. I have better idea - sell futures of human shit for 2 trillions, my company will cost 300 trln. Buy stocks now, don't loose an opportunity
Bidenomics baby!
meow
One overpriced tech earning result rally global stocks ... recession and inflation eliminated......might as well use Nvidia QR as global economy yardstick....
Yeah, watch what happens tomorrow. it's gonna vaporize from the manipulation.
That's always a possibility, always. However, the market has breadth and some momentum so the probabilities are not leaning to a giant drop. Another however, from Urban Carmel: "Historically, a 3% dip takes place on average every 1-3/4 months and a 5% dip every 3-1/2 months. We haven't had more than a 2% dip in over 3-1/2 months." So there's that.
Oooops. Bad call.
Nvidia $NVDA remins of $tsla in 2019/2020! NVDA will be the biggest downfall like tsla because we all know how that will happen
When TSLA pe reached NVDA's pe, TSLA kept going up.
Hey guys this game is easy.Always up.
That's why buy the dips works.
...in a bull market
Riding with Biden, Build Back Better!
leo drank all the koolaid..
 meow
*  correction:  Should be: "NVDA failed to make 4 figures today"
As NVIDIA jack up steroids 🤭🤭
lol this is preposterous and simply crimimal.
sorry for your losses...
It's not as simple as you think.
The biggest investment JOKE in the world just got bigger.  Assume the proper position America.
more delusional statements from Mitch...
seems to me Mitch your the joke, and are the one taking the proper position...
just goes on and on
Why does everyone want to change how the game is played??? Instead of complaining how the market is a fraud why not profit from it. It makes no sense if you ask me.
made over a 100k today!! Bulls to the moon!!
up about the same amount today. I take paper gains rather than bear losses.
  Paper gains are better than losses of any kind.  Paper gain has potential to become bigger realized gain.
just remember to protect your gains with appropriate stops. or use an options strategy on larger positions and longer term investments.
moron buying, using the fed, a delusional market, ??all the shorts losing money and trying to spread a little fear...if the markets can hold support at their old highs we got a major break out coming. and a possible verification of the 100 year cycle and a secular Bull market.....the 4 year cycle is also signaling a rally for 2024.
The market is definitely delusional.
Just as retrumplican base being delusional doesn't stop Trump from profiting off it, we shouldn't stop profiting off the market.
Just as retrumplican base being delusional doesn't stop Trump from profiting off them, we shouldn't stop profiting off the market.
US average personal savings rate is 3.5% per person based on a 2023 median income of $67,521 for a total median savings based on the average of $2,363 per year.  Meanwhile household debt is 17.5 trillion or ~$106,000 per taxpayer.  Credit card debt is 1.3 trillion or $6900 per cardholder and rocketing up at a 45 degree angle, delinquencies are up over 100% 2022 to 2023 and rising as fast.  US Real Median income is down over 5% 2021 to 2023.  I just wonder what all this AI investment will be used for in the coming years, datamining, profiling and advertising to people drowning in debt with no money to spend as a consumer.  Going to start getting automated adds on the tastiest bugs to eat and how to prepare them over an open fire outside your tent.
How much of that $106k per taxpayer debt is in mortgage or auto loans?  How much is in non-collateralize debt?
Mag7 up 5% today so their weight in sp500 increases more.
DAMN YOU JOE BIDEN!!! ENOUGH OF YOUR SOCIALISM DESTROYING AMERICA!!! WE NEED TRUMP AND S&P 3500 BACK BEFORE IT'S TOO LATE!!!
never short sell, enjoy the money game
tired of winning, NOT
Haha!
Mmmmm, breathe in deeply that delicious market breadth.
Morons buying. There must be a lot of them as sp500 is going up 2% with no resson.
the precieved risk to capital has declined. that's the reason AIA.
The stock market just magically added nearly $1 trillion of value in less than 24 hours because a company valued at $2 trillion reported a revenue of $20 billion.
Anyone remember the sock puppet mascot for pet supplies sold online in 1999-2000.
Definitely overinflated. Needs to crash hard
Wont crash anytime soon as long as it keeps hitting consensus for revenues and EPS
With this hype in movement of asset, what do people think the inflation rate might be if FED decides to cut IR on the first half of 2024? Inflation would pop right back on certainly, recent economic indicators results has shown the economy is still growing well without FED cutting rates, so why should they do it in the near future? People are gambling for the last pieces of the cakes that almost finished by sharks. Facts will remain while money are being transferred from poor to rich, gamblers to manipulators.
meanwhile inflation ticking back up, grocery and gasoline prices are rising and the fed's just confirmed higher rates for longer. all bullish it seams
"above average" that generally matches the inflation rate but fails to make up for previous diving dips. Dylan is correct.
statistically there is no meaningful increase in inflationary grocery and energy prices so far this year.
one or two months of low to moderate increases don't make a trend
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