U.S. stocks close mixed as S&P 500 holds record high

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24th February 2024 – (Hong Kong) In a week marked by positive momentum, U.S. stocks concluded on a mixed note on Friday. The S&P 500, after reaching yet another intraday record high, managed to maintain its steady position. The Dow Jones Industrial Average saw a rise of 62.42 points, or 0.16 per cent, reaching a fresh record and closing at an all-time high of 39,131.53. The S&P 500 added a modest 1.77 points, or 0.03 per cent, ending at 5,088.8. However, the Nasdaq Composite Index experienced a slight decline of 44.80 points, or 0.28 per cent, finishing at 15,996.82.

Among the 11 primary sectors of the S&P 500, seven closed in positive territory. Utilities and materials led the gainers, rising by 0.71 per cent and 0.58 per cent, respectively. On the other hand, energy and consumer discretionary sectors faced a decline, dropping by 0.58 per cent and 0.34 per cent, respectively.

Following an impressive single-day gain of $277 billion, Nvidia’s stock continued its upward trajectory on Friday, inching closer to an astonishing $2 trillion market valuation. However, investors appeared to exercise caution after witnessing this unprecedented surge.

Louis Navellier, the founder of Navellier & Associates, highlights the market’s reaction to Nvidia’s earnings, stating, “We saw the market pullback this week on the uncertainty of NVIDIA earnings and a major relief rally when the AI demand was reconfirmed. It’s been a strong week and a strong month. Following a good earnings season, it’s difficult to see, besides some profit-taking, what will push us off this positive trend.”

Greg Marcus, from UBS Private Wealth Management, suggests that investors should seize opportunities amidst market volatility, particularly in the big tech sector. Marcus states, “There will likely be pullbacks and volatility over the next few months, and we are supportive of the buy-the-dip mentality when it comes to big tech.”

While the artificial intelligence boom continues to dominate headlines, market attention is gradually shifting towards the possibility of future interest rate cuts by the Federal Reserve. Although the timing remains uncertain, several Fed officials have recently hinted at the potential for future easing, albeit not in the immediate future. As a result, the 10-year Treasury yield experienced a slight decrease, settling at 4.261 per cent.