On February 23, the S&P 500 and Dow Jones Industrial Average reached another all-time high, with all three major Wall Street indexes posting weekly gains, fueled by the continued momentum in artificial intelligence stocks. Nvidia, a leading figure in AI, saw its shares advance, momentarily achieving a market capitalization over $2 trillion for the first time. Following its exceptional earnings report, Nvidia experienced the largest single-day market value increase in Wall Street’s history, adding $277 billion. Despite smaller gains on the week’s last trading day, Nvidia remained a focal point in the market.
Anthony Saglimbene, Ameriprise’s chief market strategist, highlighted Nvidia’s pivotal role in driving the Nasdaq and S&P 500 upwards. He mentioned that while there has been a shift in expectations regarding Federal Reserve interest rate cuts—a potential market headwind—the outstanding performance of Nvidia and other big tech companies has overshadowed these concerns.
The focus on big tech, especially Nvidia, has been so pronounced that it has diverted attention from other market dynamics. Nvidia’s influence extended to other big tech and growth stocks, which saw varied performances; Apple, Tesla, and Meta Platforms experienced declines, while Super Micro Computer faced a drop after announcing the pricing of its convertible notes.
Preliminary data showed the S&P 500 slightly up by 2.28 points or 0.04%, closing at 5,088.78 points, whereas the Nasdaq Composite fell by 44.80 points or 0.28%, finishing at 15,996.82. The Dow Jones Industrial Average increased by 60.58 points or 0.16%, reaching 39,129.69. Most S&P sectors ended in the green, with utilities, materials, and industrials among the top performers.
Carvana’s shares surged after the company reported its first annual profit, benefiting from an agreement with bondholders to reduce its debt by $1 billion. Conversely, Warner Bros Discovery’s shares declined following a reported quarterly loss larger than expected, as the company navigated the impact of Hollywood strikes on content production. Block, led by Jack Dorsey, saw its shares jump after projecting current quarter adjusted core earnings above Wall Street’s expectations, optimistic about consumer resilience.
