U.S. stock markets witnessed a notable uptick on Friday, propelled by the burgeoning interest in artificial intelligence (AI) and aided by falling Treasury yields.
The technology sector, led by giants such as Nvidia and Meta Platforms, played a pivotal role in driving the S&P 500 and Nasdaq to close at record highs.
Nvidia’s shares soared by 4%, crossing the $2 trillion market value threshold for the first time, while Advanced Micro Devices also experienced a significant surge, closing at a record high.
The enthusiasm for AI not only bolstered semiconductor companies but also contributed to the fourth consecutive month of gains across the three major indexes.
Investors have been closely monitoring the economy’s resilience, with a keen eye on the Federal Reserve’s interest rate decisions.
Current speculations lean towards a potential rate cut in June, amidst hopes for a soft economic landing.
According to Sam Stovall of CFRA Research, the slow adjustment of interest rates signals a gradual departure from the high-rate cycle, eliminating the need for aggressive rate cuts.
The Dow Jones Industrial Average also saw an increase, albeit more modest compared to its counterparts, while the Nasdaq and S&P 500 experienced more significant gains.
Despite the Dow’s slight decline over the week, the S&P 500 and Nasdaq reported gains.
The economic landscape remains mixed, with a robust services sector and tight labor market juxtaposed against manufacturing weaknesses.
However, some positive signs hint at a potential rebound in manufacturing.
This, coupled with lower Treasury yields and optimistic statements from Federal Reserve officials regarding inflation and the labor market, provided additional market support.
The technology sector emerged as the day’s star performer, while utilities lagged behind.
Among individual stocks, Dell Technologies made headlines with a significant surge after projecting annual revenues and profits that surpassed analyst expectations.
Conversely, New York Community Bancorp faced a downturn after revising its quarterly loss to a much higher figure due to identified internal control weaknesses.
Market dynamics reflected a positive trend, with more stocks advancing than declining.
The S&P 500 and Nasdaq both registered new highs, underscoring the market’s upward trajectory amidst ongoing economic and interest rate discussions.