Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Stock Market Today: S&P 500 in record close as Nvidia-fueled tech rally continues

Published 01/03/2024, 00:26
Updated 01/03/2024, 21:14
© Reuters.

Investing.com-- The S&P 500 and Nasdaq wrapped up a strong week with record closes on Friday, underpinned by slump in Treasury yields and an Nvidia-led surge in chip stocks as the latest quarterly results from tech continue to point to accelerating artificial intelligence demand.

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 98 points, or 0.3%, S&P 500 gained 0.8% to close at 5,136.23, while NASDAQ Composite jumped 1.1% to a record 16,274.94.

Fed’s Waller remarks, weaker data sink Treasury yields

Fed governor Christopher Waller said Friday he would like to see the U.S. central bank shift its holdings more toward short-term Treasuries, sending the yield on the 2-year Treasury 11 basis points lower to 4.54%.

Data on Friday showing consumer sentiment unexpectedly slipped in February, and manufacturing activity deteriorating further into contraction territory boosted hopes for an earlier rate cut in further blow to Treasury yields to boost growth sectors including tech.

Markets are pricing in a rate cut in June, according to Investing.com’s Fed Rate Monitor Tool.  

Nvidia (NASDAQ:NVDA) closes above $2T for first time as Dell, Netapp, Hewlett Packard results underscore AI demand 

Nvidia-led a surge in chip stocks to close above $2 trillion for the first time ever as bullish quarterly results from enterprise hardware makers including Dell showed demand for AI-enabled hardware including chips continued to accelerate.

Dell Technologies (NYSE:DELL) surged 31% on stronger-than-expected earnings and guidance as solid demand for its artificial intelligence-optimized servers offset weakness in personal computing.. Dell’s AI backlog at the end of the quarter for GPU servers was $2.9B, up about 80% from $1.6B last quarter.

Hewlett Packard Enterprise Co (NYSE:HPE), meanwhile, reported softer guidance, pressured by ongoing weakness in the PC market, and reported AI server shipments of $400M and $3B of backlog. The stock rose 2%, shrugging off negative remarks on Wall Street. "The stock remains relatively inexpensive, but given the flat outlook and ongoing macro concerns we view the risk/reward in HPE as balanced," UBS said in a note.

NetApp (NASDAQ:NTAP) soared 18% on a strong outlook for 2024 amid an improving demand backdrop following a period of stagnant demand. The company's "new solutions appear to target block specifically and could allow NTAP to significantly grow its TAM if they succeed in penetrating the market," Wedbush said in a note.

Fisker tumbles after flagging financial trouble; New York Community Bancorp warns of material weaknesses in internal controls

Electric vehicle maker Fisker (NYSE:FSR) plummeted more than 34% after it warned of a substantial doubt over its ability to stay afloat amid waning EV demand and production setbacks. The company said, however, that it was in talks with an large automaker to potentially secure funds and detailed plans to cut its workforce by 15% as it looks to strengthen its finances. 

New York Community Bancorp (NYSE:NYCB) tumbled nearly 26% after the embattled regional lender said it had found "material weaknesses" in company controls related to an internal loan review, stoking further worries about its exposure to commercial real estate loans.  

Vista Outdoor (NYSE:VSTO) rose 6% after the Wall Street Journal reported that the sporting and outdoor products group has received a $2.9 billion takeover offer, including debt from investment firm MNC Capital.

Boeing reportedly eyes Sprit Aerosystems takeover amid pressure to step-up quality control

Boeing Co (NYSE:BA) is currently in talks to acquire its supplier Spirit Aerosystems Holdings Inc (NYSE:SPR), The Wall Street Journal on Friday, citing unnamed sources, sending shares of the latter up 14%.

The move comes as Boeing pressure is mounting on the aircraft maker to restore its credibility after a recent string of issues affecting 737 MAX jets including the Alaska Airlines door blowout in January that was linked to faulty door plug supplied by Spirit AeroSystems.

Earlier this week, the U.S. Federal Aviation Administration ordered Boeing to develop a comprehensive plan to address quality-control issues within 90 days.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.