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Stock Market Today: Nasdaq notches closing record for first time since 2021

Published 02/28/2024, 06:48 PM
Updated 02/29/2024, 04:07 PM
© Reuters.

Investing.com-- The Nasdaq on Thursday closed at record highs for the first time since 2021, as the artificial-intelligence-led rally continued and an in-line inflation report boosted hopes of a summer interest rate cut. 

By 16:00 ET (21:00 GMT), the S&P 500 rose 0.4% to close at a record of 5,092.21, and NASDAQ Composite climbed 0.7% to also close at record of 16,091.92.  Both benchmarks their best monthly returns since November.  The Dow Jones Industrial Average was up 46 points, 0.1%. 

Fed's preferred inflation gauge meets economists' expectations 

The personal consumption expenditures (PCE) price index rose 0.3% last month, and 2.4% in the 12 months through January. That was the smallest year-on-year increase since February 2021 and followed a 2.6% advance in December, easing investor concerns that sticky inflation will see the Fed keep interest rates at elevated levels for longer.

Treasury yields fell on the news, though losses were kept in check by data showing personal income, which includes earnings, property income as well as other benefits, jumped 1% on the month in January, suggesting the consumer spending is likely to continue. 

In another positive development for rate-cut hopes, jobless claims rose 13,000 in the week ended Feb. 17, above economists estimates for an 8,000 increase. 

Retailers deliver mixed performance on earnings stage 

Best Buy (NYSE:BBY) stock rose more than 1% after the electronics retailer posted a smaller drop in fourth-quarter sales than expected and beat profit estimates, benefiting from holiday deals for big-ticket purchases and growth in paid memberships.

Bath & Body Works (NYSE:BBWI) stock fell 5% after the specialty retailer forecast annual sales and profit below analysts' expectations as consumers scaled back spending on non-essential items like candles and fragrances.

Enterprise software companies shine, but Snowflake bulls melt after guidance falls short, HP (NYSE:HPQ) falters

Salesforce Inc (NYSE:CRM), up 3%, rolled out its first-ever quarterly dividend and boosted it buyback program offsetting full-year guidance that fell short of analyst estimates. Some on Wall Street believe customer relationship software maker is poised to take advantage of the artificial-intelligence boom, paving the way for increased market share. 

"We believe this is a major land grab opportunity that could significantly benefit CRM over the coming years and could increase overall revenue by $4 billion+ annually based on our estimates and field work by 2025," Wedbush said in a note. 

Okta Inc (NASDAQ:OKTA) jumped 22% after the digital security company issued strong guidance for the current quarter following fourth-quarter results that topped Wall Street estimates.

Snowflake (NYSE:SNOW) fell 18% after announcing that its CEO Frank Slootman had retired and the cloud data analytics company forecast first-quarter product revenue below Wall Street estimates, pressured by rising competition. Still, Macquaries said the sell off represent buying opportunity, upgrading Snowflake to outperform amid AI-led optimism. 

Snowflake has "cleared the decks with its lower guidance, but we think its strong product and sales organization mitigate C-suite uncertainty," Macquarie said in a note.

HP (NYSE:HPQ) fell nearly 1% after its quarterly revenue missed estimates, driven by weaker personal computing demand as enterprise customers push back upgrades. 

Lawmakers make progress on efforts to avoid government shutdown 

The U.S. House of representatives backed a bill to avert a partial government shutdown, sending the legislative measure to a vote the Senate. Should the stopgap funding bill, which aims to extend government funding for one week, clear the upper chamber, it will be sent to President Joe Biden's desk to sign into law ahead of the midnight Friday deadline.

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

Latest comments

New U.S. record for “can kicking” and congress getting paid to do nothing. If these were private sector jobs would they be cut? Answer: SCOTUS rules on BRUNSON Case and clean house (Congress)
The Supreme Court declined to hear the Brunson case. If you are not aware of this, perhaps you need to broaden your news landscape.
Any datas above , below or similar to previous result are consider goid bullish news ..... achieving analysts expectation are the best news
Generally. things happening as expected is good for business, and keeps insurance.rates (& VIX) low.
"If he's elected the stock market will crash," Donald Trump referring to Joe Biden, 2020.
@kevin: For 2022, the S&P was down 5.7%, and is now up 51% since Biden won the election.
 we can all blame the stock markets' record highs on Biden's dementia and democrats' socialist policies, or so I am told repeatedly here
 "up 51% since Biden won the election"  -- stock markets tripled under both Clinton and Obama, so I can understand why MAGA nutjobs are not satisfied with only 50% increase under Biden.....again, the blame is totally on all those democrats socialist policies!
How come on this site it's always lowered inflation and pivot imminent. Other sites say core inflation is still accelerating and rate cuts are beyond the horizon.
This article's "an in-line inflation report boosted hopes of a summer interest rate cut" is supported by the FedWatch, which is another site and doesn't say "rate cuts are beyond the horizon".
yes, why cant all authors say the same thing? so confusing. lets have one news agency only.
  If Trump wins re-election, that's what the US will have.
Boosted hopes.... lol what a new economic definition of the current bubble
Buy the f FOMO and sell before the slaughtering. Simple! If you choose to stay out, don't envy who had the balls to make money.
 Maybe as the bubble is built on piles and piles of debt and sooner or later the house of cards will come crashing down - its just a question of when and not if!! The US will be $35 Trillion in debt by circa May (The USA has doubled its national debt in under 10 years), over $1.2 Trillion piled onto credit cards and $13.8 in corporate debt. Saving levels have dried up. The USA hasnt been in this much debt since the end of WW2 - yet debt levels are still rising by $2 Trillion a year and stimulus aka more debt is still pouring in (via inflation reduction act and chips act) despite a 'strong' overheated economy with sticky inflation
  Why are you replying to Leonardo when what you're saying has nada to do with what Leon said?
Another "late trade" miracle in the BIGGEST INVESTMENT JOKE IN THE WORLD.  Predictable as the sunset.
The crooks get richer.Only when everyone is aboard as long and all the shorts are gone except them then they will drop it like a stone.When nobody knows but it will be within 6 months.
If it's predictable, you should've predicted the afternoon rally at/around today's low at 11:40 am.
IT'S A CONSPIRACY!!!
Always fake wording
this rally is about future expectations and perceived risks not yesterday's news.
  The internet increased labor productivity per capita.  AI has been/will also.  So  yes, is "going to increase the bottom line for companies".
your glass is half full Casador, it is always this way in the markets when new technologies are introduced. the idea as traders is to take advantage of the volitility while you can. this kind of market doesn't come around very often. a lot of traders that do, make millions.
this market does not resemble the markets itn the early 2000s. it looks more like the markets in the 1990s. or the 1920s.
If everything is so rosy, why isn't crude oil way up? Rate cuts will stimulate the economy, so more oil will be needed.
the world is awash in crude and natural gas.....
Soft landing doesn't mean high growth.
Remarkable how you don't see manufactured "rallies" go through these intraday gyrations.  No, they walk a tightrope to a closing high.  BIGGEST INVESTMENT JOKE IN THE WORLD.
No, market gyrated down from 2:20-2:45pm, giving back 1/3 of the 11:40am-2:20pm rally.
nice
WAIT A MINUTE!! Where's Powell?? Where's my artificially ejaculated rally??
I don't know what Powel you have been watching, but the vast majority of the time, when he talks, the market plummets.
Bidenomics is a time bomb.
the only possible Time bomb for the economy if there's a reelection of Donald Trump.
maybe not the only time bomb but certainly will be a large one. I will pull most stock and mutual fund holdings if he looks like the winner in November.
  The market was bullish in the weeks/months leading to the Nov 2020 election partly because the market saw Trump losing.
Today's action is all you need to see to understand just what a manipulated JOKE this "market" is.  Inflation rises, yet the laughingstock of the investing world "rallies" because the number "met consensus."  No different than a stock "rallying" on a "profit dropped 70% but beat estimates" narrative.  Always a guise conveniently available under which to criminally manipulate the US Ponzi Scheme.
You're not very familiar w/ the concepts of  "met consensus" or " beat estimates".  In your world, what should happen with those events?
closing in on 2.0, soft landing achieved, bidenomics is working.
That's right. "Bidenomics" is working very well indeed.
Any news on the LEI and  recent Consumer Report? Hint: they are in the toilet!!
To the moon. Only to land sideways.
Trump will have it back to 1.4
sounds like another attempt by mark, to change historical facts with misinformation about Trump's mismanagement, and incompetence.
a simple Google search proves my facts
mark more half truths, your looking at sites that don't talk about the number of deaths that could have been prevented if Trump hadn't sided with the anti vacciner's movement, or planning for the pandemic as it moved through Europe and before it hit America. then talked about injecting bleach when COVID hit America.. Trump incompetent behavior damaged our economy and created fear that damaged a lot of American families.
No powder left in the keg. Normally, NASDAQ would be up by at least 250 right now. Valuations will be forced lower to attract fresh buyers.
u wrong
Whew stocks are up. I was beginning to think shocking GDP numbers actually meant something
The US economy grew by 3.2% instead of 3.3%,Shocking!! Color me shocked! Shocked to the core!
I definitely don't understand the market. Although the inflation values came in as expected, the MOM core PCE is double the decent rate increase of 0.2% since it came in at 0.4% this month and yet that is seen as good?
doesn't matter right or wrong, the overall concern is what traders believe about the future..
profit taking on Nasdaq likely
Stocks will rally once market open as 'investors ' will brushes off negative reports as usual.......
Technology stocks continue to up
Tech stocks seem to have worth the hype considering recent developments
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