- S&P 500 hit a new all-time high on Thursday
- Nasdaq Composite is up more than 2% in the first half of the session.
- Nvidia Corp. (NVDA) shares gain more than 10% following upbeat earnings report.
Dow Jones (DJIA) is up 0.6% at 38,832.94, S&P 500 (SPX) rises 1.5% to trade at a new record-high of 5,056.14 and Nasdaq Composite (IXIC) gains 2.2% at 15,921.72 in the first half of the session on Thursday.
Stock market news
- The Technology Sector is the best-performing major S&P 500 sector, rising more than 3.5% on the day. On the other hand, the Utilities Sector is down nearly 1%.
- Nvidia Corp. (NVDA) stock is up 15% to trade at $777.35 as the biggest-gainer in the S&P 500. The chipmaker reported that earnings per share topped $5.16 versus the $4.64 forecast, while revenue climbed to $22.10 billion compared to the expected $20.62 billion. The company also said that it forecasts the current-quarter revenue of $24 billion, plus or minus 2%.
- Read more: Nvidia Stock Earnings: NVDA Q4 results trounce consensus.
- Mizuho has raised the target price for Nvidia stock to $850 from $825, HSBC lifted its target to $880 from $835 and Citigroup revised its expectation to $820 from $575.
- ETSY Inc. (ETSY) is down nearly 7% at $71.75 as the worst performing S&P 500 stock in the early trade.
- The US Department of Labor reported that there were 201,000 Initial Jobless Claims in the week ending February 17, a 12,000 decrease from the previous week’s reading of 213,000.
- The Federal Reserve (Fed) said in the Minutes of the January policy meeting that most policymakers noted the risks associated with moving too quickly to ease the policy. Furthermore, the publication showed that officials highlighted uncertainty around how long the restrictive policy stance would be needed.
- Read more: Fed Minutes suggest rates are at their peak.
- Federal Vice Chair Philip Jefferson said on Thursday that he wants to move in a way that would not lead to stops and starts in policy and increase policy uncertainty.
- Retailer giant Walmart Inc. (WMT) reported an adjusted earning per share of $1.8 ahead of the opening bell on Tuesday. The company said that it expects consolidated net sales to rise in the range of 3%-4% and announced that it will buy smart-TV producer Vizio (VZIO) for about $2.3 billion.
- Home Depot Inc. (HD) said net income in Q4 was $2.8 billion, and the adjusted earnings per share was $2.82. The company, however, said that it projects sales for the fiscal year 2024 to be below estimates, citing slowing demand for discretionary items such as flooring, furniture and kitchen, per Reuters.
Nasdaq FAQs
The Nasdaq is a stock exchange based in the US that started out life as an electronic stock quotation machine. At first, the Nasdaq only provided quotations for over-the-counter (OTC) stocks but later it became an exchange too. By 1991, the Nasdaq had grown to account for 46% of the entire US securities’ market. In 1998, it became the first stock exchange in the US to provide online trading. The Nasdaq also produces several indices, the most comprehensive of which is the Nasdaq Composite representing all 2,500-plus stocks on the Nasdaq, and the Nasdaq 100.
The Nasdaq 100 is a large-cap index made up of 100 non-financial companies from the Nasdaq stock exchange. Although it only includes a fraction of the thousands of stocks in the Nasdaq, it accounts for over 90% of the movement. The influence of each company on the index is market-cap weighted. The Nasdaq 100 includes companies with a significant focus on technology although it also encompasses companies from other industries and from outside the US. The average annual return of the Nasdaq 100 has been 17.23% since 1986.
There are a number of ways to trade the Nasdaq 100. Most retail brokers and spread betting platforms offer bets using Contracts for Difference (CFD). For longer-term investors, Exchange-Traded Funds (ETFs) trade like shares that mimic the movement of the index without the investor needing to buy all 100 constituent companies. An example ETF is the Invesco QQQ Trust (QQQ). Nasdaq 100 futures contracts allow traders to speculate on the future direction of the index. Options provide the right, but not the obligation, to buy or sell the Nasdaq 100 at a specific price (strike price) in the future.
Many different factors drive the Nasdaq 100 but mainly it is the aggregate performance of the component companies revealed in their quarterly and annual company earnings reports. US and global macroeconomic data also contributes as it impacts on investor sentiment, which if positive drives gains. The level of interest rates, set by the Federal Reserve (Fed), also influences the Nasdaq 100 as it affects the cost of credit, on which many corporations are heavily reliant. As such the level of inflation can be a major driver too as well as other metrics which impact on the decisions of the Fed.
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