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Stock Market Today: S&P 500 closes above 5K for first time as tech powers ahead

AuthorYasin Ebrahim
Published 02/09/2024, 07:38 AM
Updated 02/09/2024, 04:28 PM
© Reuters

Investing.com -- The S&P 500 closed above the 5,000 level Friday as the record run in stocks continued, underpinned by a rally in tech stocks and economic data showing inflation continues to trend lower. 

By 16:00 ET (21:00 GMT), the S&P 500 rose 0.6% to end the day at record high of 5,025.86, the tech-heavy Nasdaq Composite rose 1.3%, and the blue-chip Dow Jones Industrial Average fell 0.1%

Big tech jumps as Microsoft (NASDAQ:MSFT) eyes record valuation as AI optimism continues

Big tech continued to add to recent gains, with Google (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Microsoft in the ascendency as the latter's market capitalization of $3.125 trillion topped the record of $3.081T previously set by Apple. 

Chip stocks also inspired the rally in tech as chip demand will ramp up as the artificial-intelligence boom strengthens.    

"We are in inning 1 of the AI Revolution, a revolution that is going to touch everyone and everything, one that every major company has to contemplate how it will or is affecting its business today and in the near future," Jay Pelosky, TPW Advisory Founder and Principal said in a note.

Inflation continues to trend lower

A revised print of U.S. consumer price index data showed that the annualized rate of inflation in the fourth quarter was unchanged at 3.3%, suggesting that an easing in price pressures throughout last year is still in tact.

The revisions, however, are unlikely to alter the Fed's course on rates, Scotiabank Economics said, as a "very strong US economy and job market plus rising global transportation costs are among the factors that are keeping the Fed cautious."

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PepsiCo , Take-Two, Pinterest punished for softer guidance 

PepsiCo (NASDAQ:PEP) reported mixed-quarter results and cut its guidance as the food and beverage pricing power wanes and volumes come under pressure. its shares ended more than 3% lower.

Still, more favorable movements in currency, and Pepsi outlook for dollar EPS of $8.15, should "actually result in a slightly positive earnings revision for 2024 based on current Street estimates," Wedbush said in a note.

Shares in Pinterest (NYSE:PINS) tumbled nearly 10% after the social media company missed fourth-quarter revenue expectations and issued soft guidance for the March quarter.

Some on Wall Street, however, continued to flag the company's current valuation as a concern, which is "pricing in a lot of upside despite the immaterial contribution today," UBS said in a note.

Take-Two (NASDAQ:TTWO) Interactive has cut its annual bookings guidance, citing projected softness for titles like "NBA 2K24" and a planned release moving out of its fiscal fourth quarter. Shares in the video game publisher fell more than 8%.

Cloudflare shines brightly on earnings stage

Cloudflare (NYSE:NET), meanwhile, jumped 21% after reporting better-than-expected first-quarter results and upbeat guidance, driven by new customer wins. 

Bitcoin bounce powers crypto stocks

Bitcoin rose more than 4%, helping crypto-related stocks including , Marathon Digital Holdings Inc (NASDAQ:MARA), Riot Platforms (NASDAQ:RIOT), CleanSpark Inc (NASDAQ:CLSK) rally, with latter also helped by Q1 results that topped Wall Street. 

The latest surge in bitcoin comes amid recent signs that interest in the Bitcoin-spot exchange traded fund is attracting interest. 

The BlackRock (NYSE:BLK) iShares Bitcoin Trust has racked in funds, becoming one of the top five exchange-traded funds of 2024 by inflows, according to recent data from Bloomberg Intelligence.

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Latest comments

Make NASDAQ 10 Composite! How much Composite?
This market has all the markings of 1999 and 2008.
markets perform better under Democrat presidents. the fact speaks for itself.
Post WWII, the best US stock market performance happened under Bill Clinton (SPX up 210%.  Also, budget surplus).  The 2nd-best under Obama (up 189%).
markets perform better under Democrat presidents. the facts speak for themselves. If you have money in the markets, and want to turn a profit, then you know what to vote..
markets perform better under Democrat presidents. the facts speak for themselves. If you have money in the markets, and want to turn a profit, then you know what to vote.. unless, of course, you are some deluded maga-loon living in some rightwing alternative reality...
markets perform better under Democrat presidents. the facts speak for themselves. If you have money in the markets, and want to turn a profit, then you know what to vote.. unless, of course, you are some deluded maga-loon, hellbent on shooting yourself in the foot...
Best of luck to Biden regime with his 37 approval rating if democrats think that a few stocks with massively inflated P/Es are going to win him reelection while 90% of people feel that they economy is worse under Biden than Trump due to their everyday living costs and expenses.
Biden has the lowest approval of any president in modern history, 37. And that is before the report yesterday by his own DOJ saying he is in mental decline. A few stocks with massively inflating P/Es while 90% of citizens feel the economy is worse under Biden than Trump due to actual effects on everyday citizens and their daily lives is not going to win the potato re-election.
Biden has the lowest approval of any president in modern history, 37. And that is before the report yesterday by his own DOJ saying he is in mental decline. A few stocks with massively inflating P/Es while 90% of citizens feel the economy is worse under Biden than Trump due to actual effects on everyday citizens and their daily lives is not going to win the potato re-election. It is why Trump is currently leading Biden in every national poll. Even democrats know Trump is better for this country and the world than Biden and only pretend to support Biden due to the severe TDS.
Agree with Brad, Trump was able to achieve new stock market highs even with the pandemic without causing massive inflation. Biden has caused record government debt, record corporate debt, record individual debt. Credit card debt today hit $1.1 trillion and the number of people behind on payments has also gone up. 90% of people feel that the economy is worse under Biden than Trump. The stock market has only recently regained levels from 2022 due to massive rise in government debt, which citizens have had to pay for in the form of record 50+ year high inflation. Cri.me is worse across the country. Ill.eg.al im.mig.rant problem is at historic levels. Biden's me.ntal status is declining by the day. Trump is leading in every national poll. So yes, Biden has got to go. 7 stocks with massively inflating P/E is not going to win Biden the election. Biden has the lowest approval of any president in modern history, 37. The only person with lower approval is Kamala, who is at 25.
Nvidia did not even go up $25 today, what a big investment joke.
This market has pre-emptively added trillions of dollars of value for "AI" earnings that have not yet been demonstrated. Same as 1999 internet bubble. NVDA gained $60 billion of valuation today and only made $15.3 billion earnings in all of 2023.
and there are people still believing in this infinite rise, if Nvidia reports its earnings lower than expected, the market will drag other AI tech companies, then yes, I want to see where the SP goes HAHAH
This market has pre-emptively added trillions of dollars of value for "AI" profits that have not yet been demonstrated. Same as 1999 internet bubble.
Imagine what will happen with all these companies who are adding trillions of dollars of valuation pre-emptively while firing tens of thousands of people and shifting all resources into AI. Just like 1999 they are conflating interest in AI technology with profitability of these resource shifts. Once the valuation bubble pops these companies and our entire economy is going to be screwed as all this unsupported value evaporates.
The market moved up because everyone knows Biden is Finished.
trump will return America into a corrupt chaotic country again with world leaders laughing at his buffonary. and disgracing America.
Biden with his flats is still America's best choice.
Biden with his faults is still America's best choice.
Dow could not even manage to close green today. These big tech companies are firing tens of thousands of dollars and their valuations are being pumped up because they say the word "AI". They have yet to proven that any of their AI initiatives are actually going to produce the types of profits they are talking about. Same as the internet bubble of 1999. These companies have already factored in half a century of profits without yet showing any growth.
Talk about 1999. The market cannot do anything but dump trillions of dollars of value into the same 5 stocks. The average P/E of these stocks has gone up over 500% compared to just 10 years ago.
prob 16000 as they said for super bowl ads. what a joke. 🤦🏽🤦🏽🤦🏽😫😫😫🤣🤣🤣🤣
Pure, unadulterated FRAUD and CRIMINAL MANIPULATION on full display in living color, only in the US Ponzi Scheme, biggest investment JOKE in the world.
Markets go up and down elsewhere, too; not "only in the US".
IT'S A CONSPIRACY!!!
Hot 500 S&P 😂😂😂😂
And we have not seen the real kick-off when Fed actually begins lowering interest rates.
Bears do tend to discount the many upside catalysts.
No Jokes here kids… S&P 5800 well within December end. This mother of all bull runs goes on well into 2027 - S&P 8300 here we come…
SPX is about 5.3% above price from end of December.
Welcome to the "late trade" magic show, as the DOW loss miraculously vanishes into thin air, the S&P holds above it criminally manipulated 5K, and the NASDAQ soars to the most grossly overvalued level in history.  Ah yes, savvy "investors" just love loading up into the close on a Friday to hold over the weekend.  BIGGEST INVESTMENT JOKE IN THE WORLD.
The Dow is a crappy, non-representative index.  Using the Dow to make your point is "criminal manipulation".
And market just dipped. so you're wrong on "late trade", too.
And you're wrong on "late trade", too.
NVDA made a total of $15.3 billion in all of 2023, and today official has a market cap that is greater than the total valuation of the entire Chinese stock market.
*officially
Notice how they push out a dozen articles to the front page every day about Trump, but Biden yesterday was revealed to have criminally taken and divulged confidential information but they decided not to prosecute because he is too feeble and mentally incompetent. That is from his own DOJ. He then went out and did the worst press conference of any president in modern history and mixed up the President of Egypt with President of Mexico.
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