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Stock Market Today: Dow, S&P 500 clinch record close despite pause in tech rally

Published 02/22/2024, 07:57 PM
Updated 02/23/2024, 04:19 PM
© Reuters.

Investing.com-- The Dow and S&P 500 notched a record close Friday, even as the rally in Nvidia cooled to blunt the broader tech sector's swashbuckling gains amid waning optimism for aggressive Federal Reserve rate cuts this year.       

By 16:00 ET (21:40 GMT), the Dow Jones Industrial Average closed 62 points, or 0.2%, S&P 500 eked out gains to close at a fresh record of 5,088.85, while Nasdaq Composite fell 0.3%. The three major averages closed up for the week, rising more than 1%.

Nvidia briefly joins $2 trillion club as climb continues

Nvidia (NASDAQ:NVDA) gave up the bulk of its gains to close just above the flatline after briefly hit $2 trillion in market value for the first time, having added $277 billion in stock market value the previous day, Wall Street's largest one-day gain in history.

Nvidia's blockbuster earnings saw investors largely trade past warnings from the Federal Reserve that interest rates will stay higher for longer- a notion that was further reinforced by stronger-than-expected jobless claims data.

The gains in Nvidia helped keep losses in the broader semiconductor index in check after Super Micro Computer Inc (NASDAQ:SMCI) and Advanced Micro Devices Inc (NASDAQ:AMD) gave up some gains from a day earlier. 

Fed speak continues to weigh on rate-cut bets

Investors continued to rein in their expectations for aggressive rate cuts, following fresh remarks from Federal Reserve officials that point to a prolonged higher-for-longer interest-rate regime. 

Federal Reserve Board Governor Christopher Waller said on Thursday that he was in "no rush" to lower rates. A slew of Fed members have previously echoed this notion, citing fears of sticky inflation and strength in the labor market.

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Traders are now expecting the first rate cut in June rather than May, with just four rate cuts expected, according to Investing.com's Fed Rate Monitor Tool. 

Analysts at Goldman Sachs said that they no longer think the U.S. Federal Reserve will move to slash interest rates at its policy meeting in May following Waller's comments, now expecting the Fed to roll out its first 25 basis-point cut in June.

Warner Bros Discovery slumps after quarterly loss; Carvana , Block shine on earnings stage 

Warner Bros Discovery (NASDAQ:WBD) stock slumped more than 9% after the media giant reported a bigger-than-expected quarterly loss on Friday, as the media conglomerate battled a weak advertising market and the fallout of the twin Hollywood strikes on content generation.

Carvana (NYSE:CVNA) jumped 31% after the used car company narrowed quarterly losses and forecast core earnings well above $100 million in the first quarter, 

The company "continues to show outsized GPU improvement and is giving bulls hope of being on the doorstep of a bigger return to volume growth," RBC said in a note as it upgraded its price target on the company to $45 from $24.

Payments firm Block (NYSE:SQ) gained 16% after it beat quarterly revenue estimates and hiked its annual operating profit outlook, driven by strong performance in its Cash App as margins improved.  

Block "sharpening its focus within its two key businesses Square and Cash App, and becoming hyper-focused on driving profitable growth has been impressive - and we think there's more to go," Seaport said Friday after upgrading its rating on the stock to buy from neutral. 

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Intuitive Machines soars as moon touch down sparks rally; RIVN remains in reverse after UBS double downgrade

Aerospace firm Intuitive Machines (NASDAQ:LUNR) rallied nearly 16% after its Odysseus lunar lander successfully touched down on the moon, becoming the first private craft to do so and the first U.S. craft on the moon since 1972.

Rivian (NASDAQ:RIVN), meanwhile, fell 12% to add to its losses from a day earlier after UBS slapped a sell rating on the stock, marking a double downgrade form a buy on worries of waning EV demand.

"A changing EV backdrop causes us to reassess our demand view and makes RIVN’s current strategy quite onerous on the ramp to profitability and cash flow," UBS said in a note.

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

Latest comments

I just asked AI to created an image of the stock market, it produced a picture of Winnie the Pooh handing a back of cash to Nancy Pelosi. Also, Nancy Pelosi was black for some reason.
*bag
there will be no more red days. green till the end of time
NASDAQ and S&P miraculously back in the green.  Can't have a day without a criminally manipulated "record high" or a loss on a Friday.  Another financial knife in the back of America, as the US working class is financially defiled in broad daylight by the BIGGEST INVESTMENT JOKE IN THE WORLD.
  Here's a bit of education:  Accept that you don't understand the market.  Don't attribute every little market move to miracle or magic or fraud.  That mentality is what led early cavemen to invent religions.
loser mitch is paid to post what he knows nothing about.
mitch we made a lot of money in the last couple of days. of coarse with your post we gather you're still a loser.
do you think that I should sell US dollars and buy Euro before dollar will collapse? or should I buy some stocks for dollars but not Nvidia?
Have you some information that would suggest an imminent collapse?
When the Fed signals rate cuts, it'll probably signal a gradual downtrend in rate.  Dollar won't be affected much.  Better to short bonds than USD, and to long stocks.
Klaus, if you use usd leverage inverse ETFs ,.if the dollar stays in its present trading range you could, over time, suffer significant losses in your position.. the volatility in the dollar would have to be significant in the short term, for you to make any money.
Looks like Dow 100K soon.
The break-even floor of Kevlar in living color.  Miraculous how the "market" turns up the second it's about the go red.  The criminal manipulation reaches it's most flagrant point to date.  It's obvious the fraud will continue until the DOW hits 40K.
 Haha!
"turns up the second it's about the go red"?!  No.  The market trended red for > 1 hr at a time today.
  Hard to believe, but Mitch was actually suggesting something wise, even if inadvertently!  ;-)
i am so happy! NVDA is going to save the world! we will all eat and drink chipboards! and AI will be replace the Kremlin leaders and be the next us president!...
NVDA is too flat today for you to be this triggered.
bro!! it's sarcarms
  Oops ... hard to tell apart sarcasm from and the crazies' rantings sometimes.
NVDA has a market cap of over $2 trillion right now, greater than the value of the entire Chinese stock market combine. They reported $20 billion of revenue and the stock market added nearly $1 trillion of valuation. This money does not exist. There is nothing at all supporting these valuations. NVDA could drop 90% in price right now and it would still be overpriced. This is what happened in 2000.
The only investment that should be soaring in value is Gold. Unfortunately that's managed by the Comex and their criminal paper contracts game
all govts buying gold, they will manipulate the price
Keep cheering lemmings...its all a fabricated FED run farce!
Another routine day in the criminal carnival, as Wall Street financially defiles America in broad daylight.
IT'S A CONSPIRACY!!!
rally goes on, no need to consolidate
Is it just too good to be true?
The NVDA fever is everywhere. Even Musks s come back to earth. Expect profit taking.
To the moon!!
One single company reporting $20 billion in revenue caused the market cap to be pushed to $2 trillion and the entire stock market to add $1 trillion in valuation in under 24 hours. This money does not exist. This is the definition of a bubble. The valuations are supported by absolutely nothing at all. They could fall 90% in value and still be over priced.
yep..there is a "bubble" and "ATH bubble"...whatever stock in ATH bubble condition, it will pass the real valuation xxxx% than before..LOL
How are futures lower? NVDA pumped to 800 in AH for no reason at all. The company reported $20 billion revenue and has gained over $200 billion in market cap. The company is now one of the most expensive companies in the world, worth more than the entire Chinese stock market, and just reported $20 billion of revenue. That is in sane. This is 2000 on steroids.
100 PE is the new 20 PE
 Well of course, the analyst want you to take the bags from them that they got at a significantly lower price. NVDA has gone up 250% over just the past 1 year, and is up 20,000% from 10 years ago.
 NVDA is almost the most expensive company in the world and only reported $20 billion revenue. All the future growth potential is factored in already. You are buying rainbows and unicorns right now.
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