March came in like a lion for Wall Street on Friday, with both the Nasdaq and the S&P 500 closing at record highs as investors looked to extend the tech-led rally.
The tech-heavy Nasdaq finished up 1.14% to 16,274.94, while the S&P 500 closed above 5,100 for the first time, gaining 0.80% to 5,137.08.
The Dow Jones Industrial Average rose 0.23% to 39,087.38.
For the week, Nasdaq added 1.74%, while the S&P 500 advanced 0.95%, CNBC reported. Both indexes posted their seventh positive week over the last eight. The Dow was down 0.11%.
Adam Turnquist, chief technical strategist for LPL Financial, said the S&P 500 wrapped up the month of February with a 5.2% gain, extending its winning streak to four straight months and marking its best February since 2015.
"Can the winning streak continue?" he wrote. "March has historically been a good month for stocks as the S&P 500 has posted an average return of 1.1%. However, during election years, average March returns dip to only 0.4%, with notable historical weakness midmonth."
Updated at 12:29 PM EST
Record Nasdaq
The Nasdaq Composite index hit a fresh record high in early afternoon trading, rising 0.8%, or 128.3 points, to hit a lifetime peak of 16,220.21 points, thanks to bigger intra-day moves for AI names like Nvidia, AMD and Micron.
The S&P 500, meanwhile, was marked 28 points, or 0.56% higher while the Dow gained 78 points.
NASDAQ HITS ALL-TIME HIGH, SURPASSING PREVIOUS INTRADAY RECORD SET IN NOV 2021, LAST UP 0.7%
— *Walter Bloomberg (@DeItaone) March 1, 2024
Updated at 11:35 AM EST
Micron March
Micron Technology (MU) shares jumped higher again Friday, extending their year-to-date gain to around 16%, following a price target upgrade from Mizuho tied in part to its AI links to Nvidia.
Micron shares were marked 5.5% higher in late-morning trading and changing hands at $95.60 each.
Related: Micron surges as chipmaker looks to piggyback on Nvidia AI demand
Updated at 10:53 AM EST
Green on the board
Stocks turned higher in late-morning trading, helped in part by another leg down in Treasury bond yields, with the S&P 500 now marked 15 points, or 0.29% to the good and the Nasdaq up 66 points, or 0.41%.
Benchmark 2-year notes were last marked 4 basis points lower on the session at 4.550%, with 10-year notes trading at 4.251%.
With 97% of companies reported, S&P 500 Q4 GAAP earnings per share are up 22% over the prior year, the 4th straight quarter of positive YoY growth and highest growth rate since Q4 2021. $SPX pic.twitter.com/eTwxf6E8bK
— Charlie Bilello (@charliebilello) March 1, 2024
Updated at 10:16 AM EST
Straight over-shooter?
Chicago Fed President Austan Goolsbee said Friday that waiting until inflation returns directly to the central bank's 2% target could raise the risk of "overshooting" its policy objective.
Speaking with CNBC, Goolsbee said he wouldn't be surprised if the January PCE inflation report, which showed firm tick higher in core price pressures, was "noise" in the overall slowing trajectory.
MORE CHI FED'S GOOSLBEE Q&A/CNBC: FED FUNDS RATE MINUS INFLATION VERY RESTRICTIVE; QUESTION IS HOW LONG TO STAY THERE; BELIEVE JUST LONG ENOUGH #Goolsbee #FederalReserve #economy
— Mace News (@MaceNewsMacro) March 1, 2024
Updated at 9:46 AM EST
For whom the Dell tolls
Dell Technologies shares soared more than 30% in the opening minutes of trading, rising to an all-time high of $131.04 each after it topped Street earnings forecasts and said AI demand would boost revenues in its server business.
Dell shares were last marked 26.7% higher on the session at $120.60 each.
$DELL shares are trading higher after reporting a monster beat in Q4 earnings and issuing an annual forecast that was largely ahead of Street expectations.
— Wall St Engine (@wallstengine) March 1, 2024
Also announced a 20% increase in annual cash dividend.
COO: "We have positioned ourselves well in AI,"
"More customers… https://t.co/MewwAoopmC pic.twitter.com/UfwvlffY7n
Updated at 8:36 AM EST
Barkin in 'no hurry'
Richmond Fed President Thomas Barkin told CNBC Friday that inflation is slowing, but overall price pressures remain at elevated levels and thus he's not in a hurry to push for near-term rate cuts.
Speaking with CNBC, Barkin said headline and core inflation rates are likely to slow further over the coming months, and cautioned that the January PCE report should not be seen as indicating a change in the recent-term path.
FED'S BARKIN: INFLATION IS COMING DOWN, WE SHOULD BE CHEERING THAT || ON OTHER HAND, WE HAVE TO SEE HOW MUCH MORE HAS TO HAPPEN TO GET INFLATION BACK DOWN TO 2%
— First Squawk (@FirstSquawk) March 1, 2024
Updated at 8:00 AM EST
Sour Apple
Apple (AAPL) shares were back in the red Friday, falling below the $180 mark for the first time since last November in pre-market trading, after analysts at Goldman Sachs removed the stock from their 'Conviction Buy List' citing demand headwinds tied to its new iPhone.
Shares were last marked 0.36% lower at $180.10 each, a move that would extend the stock's 2024 decline to around 3%.
Related: Apple slides as Goldman Sachs analysts unveil a big change to outlook
Stock Market Today
The S&P 500 hit another all-time high last night, extending its February gain to around 4.62%, thanks in part to another surge in AI-related stocks powered by lower bond yields and fading inflation prospects.
The moves followed the Bureau of Economic Analysis's January inflation report, which showed quickening core price pressures when compared with December, but also the twelfth consecutive year-on-year decline in both the headline and core readings.
The report suggests that the Federal Reserve, while likely to remain patient and data-dependent over the coming months, is nonetheless likely to begin the first of its three projected rate cuts at the central bank's policy meeting in June.
Benchmark Treasury bond yields reflected that view in overnight trading, falling around 3 basis points from Thursday's closing levels to trade at 4.275%, with 2-year notes sliding to 4.589%.
Inflation data from Europe, published this morning, also showed a slowing in both core and headline price pressures, although both readings for the month of January came in modestly ahead of analysts' forecasts. The report suggested that rate cuts will likely be delayed until the summer months as the ECB looks to deliver on its single price stability mandate.
On Wall Street, stocks are looking at a modestly weaker open following last night's records, with a handful of names notching standout moves in premarket trading.
Dell Technologies (DELL) shares soared more than 20% after the PC maker delivered a better-than-expected profit forecast linked in part to AI demand in its server business.
New York Community Bancorp (NYCB) plunged more than 30% after the lender posted a massive fourth-quarter loss, removed its CEO and unveiled errors in its previous financial reports tied to faulty loan oversight.
Advanced Micro Devices (AMD) shares were also on the move, rising another 2.5% after hitting a record on Thursday. The move in the chipmaker's stock reflected investors seeking value from AI-related stocks beyond Nvidia (NVDA) and Microsoft (MSFT) .
Related: Nvidia crushes earnings, stock soars. Time to buy AMD?
Heading into the start of the first trading day of March, futures contracts tied to the S&P 500 suggest a 6-point opening-bell decline while those linked to the Dow Jones Industrial Average are priced for a 75-point pullback.
The tech-focused Nasdaq, which rose 6.12% last month, is set for a 20-point dip.
In overseas markets, Europe's Stoxx 600 was marked 0.39% higher in Frankfurt following the supportive inflation data and last night's record close on Wall Street, while Britain's FTSE 100 added 0.62% in London.
Overnight in Asia, Japan's Nikkei 225 hit another all-time high at the close, rising 1.9% to 39,910.82 points, thanks to another leg higher for the benchmark's tech stocks. It came within 10 points of the 40,000 mark earlier in the session.
The regionwide MSCI ex-Japan index, meanwhile, was marked 0.26% higher into the close of trading.
Related: Veteran fund manager picks favorite stocks for 2024
