Nasdaq Surges To Record High Amid Tech Sector Rally
March 01 2024 - 4:26PM
IH Market News
Stocks showed a strong move to the upside during trading on
Friday, adding to the gains posted in Thursday’s session. With the
extended upward move, the Nasdaq (NASDAQI:COMP) and S&P 500
(SPI:SP500) once again reached new record closing highs.
The tech-heavy Nasdaq jumped 183.02 points or 1.1 percent to
16,274.94 and the S&P 500 climbed 40.81 points or 0.8 percent
to 5,137.08. The narrower Dow (DOWI:DJI) posted a more modest gain,
rising 90.99 points or 0.2 percent to 39,087.38.
For the week, the Nasdaq shot up by 1.7 percent and the S&P
500 advanced by 1.0 percent, but the Dow edged down by 0.1
percent.
The surge by the Nasdaq partly reflected substantial strength
among computer hardware stocks following upbeat results from Dell
(NYSE:DELL), with the NYSE Arca Computer Hardware Index soaring by
6.9 percent to a record closing high.
Shares of Dell skyrocketed by 31.6 percent after the computer
maker reported fourth quarter results that exceeded analyst
estimates on both the top and bottom lines.
The upbeat results from Dell also contributed to significant
strength among semiconductor stocks, as reflected by the 4.3
percent spike by the Philadelphia Semiconductor Index. The index
also reached a record closing high.
Biotechnology and networking stocks also saw considerable
strength, while gold, oil service and pharmaceutical stocks turned
in some of the best performances outside the tech sector.
The strength on Wall Street also came following the release of a
report from the Institute for Supply Management showing
manufacturing activity in the U.S. unexpectedly contracted at an
accelerated rate in the month of February.
The ISM said its manufacturing PMI dipped to 47.8 in February
from 49.1 in January, with a reading below 50 indicating
contraction. Economists had expected the index to inch up to
49.5.
The University of Michigan also released revised data showing
consumer sentiment in the U.S. unexpectedly deteriorated in the
month of February.
The report said the consumer sentiment index for February was
downwardly revised to 76.9 from the previously reported 79.6.
Economists had expected the reading to be unrevised.
With the unexpected downward revision, the consumer sentiment
index is now below the January reading of 79.0.
The data contributed to a downturn by treasury yields, which
added to optimism about the Federal Reserve eventually cutting
interest rates.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region moved mostly higher during trading on Friday. Japan’s Nikkei
225 Index surged by 1.9 percent, while China’s Shanghai Composite
Index climbed by 0.4 percent.
The major European markets also moved to the upside on the day.
While the U.K.’s FTSE 100 Index advanced by 0.7 percent, the German
DAX Index rose by 0.3 percent and the French CAC 40 Index inched up
by 0.1 percent.
In the bond market, treasuries moved notably higher after seeing
early weakness. Subsequently, the yield on the benchmark ten-year
note, which moves opposite of its price, slid 7.2 basis point to
4.180 percent after reaching a high of 4.296 percent.
Looking Ahead
Next week’s trading is likely to be driven by reaction to
congressional testimony by Federal Reserve Chair Jerome Powell and
the monthly jobs report.
Source: RTTNews
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