Traders on the floor of the New York Stock Exchange on Aug. 4, 2022.
Source: NYSE
Stock futures were little changed in overnight trading Thursday after the market wrapped up its fourth winning month and the tech-heavy Nasdaq Composite reached its first closing record since November 2021.
Futures on the Dow Jones Industrial Average dipped 12 points. S&P 500 futures were flat and Nasdaq 100 futures inched 0.1% lower.
Troubled regional bank New York Community Bancorp shed a whopping 20% in extended trading after the lender announced a leadership change and disclosed issues with its internal controls. The bank is already down more than 50% in 2024.
Major averages ended another positive month as the rally driven by an artificial intelligence boom and hopes for rate cuts chugged along. The Nasdaq was the best performer in February with a 6.1% gain. The S&P 500 climbed 5.2%, while the Dow added 2.2% for its first four-month winning streak since May 2021.
“We’re still firmly in the disinflationary camp and think the Fed will be forced to cut rates by June,” Adam Crisafulli, founder of Vital Knowledge, said in a note.
Thursday’s gains came after inflation data showed the personal consumption expenditures price index excluding food and energy, the Federal Reserve’s preferred gauge, rose 0.4% in January, in line with expectations.
Bitcoin pulled off a fierce rally in February, up nearly 45% to top $62,000. It’s the token’s best month since December 2020 as well as its sixth-straight monthly gain.
On a weekly basis, the S&P 500 is tracking for a roughly 0.2% advance, while the Nasdaq is up 0.6%. The 30-stock Dow is the laggard, down nearly 0.4%.
Ray Dalio says the U.S. stock market ‘doesn’t look very bubbly’
Billionaire investor Ray Dalio believes the U.S. stock market is not in a speculative bubble.
The founder of Bridgewater, one of the world’s largest hedge funds, analyzed the market based on his bubble criteria, which includes valuation, sentiment, new buyers and unsustainable conditions.
“When I look at the U.S. stock market using these criteria, it — and even some of the parts that have rallied the most and gotten media attention — doesn’t look very bubbly,” he said in a new LinkedIn post published Thursday.
— Yun Li
Dell shares soar 20% after strong earnings
Shares of Dell Technologies jumped more than 18% in extended trading after the tech company posted better-than-expected fourth-quarter results. Dell also showed strong demand for its artificial intelligence servers.
Chief Financial Officer Yvonne McGill said the company is increasing its annual dividend by 20% to $1.78 per share, which she called a “testament to our confidence in the business.”
— Yun Li
