NASDAQ Soars To Record All-Time High, Capping Strong February for Tech Stocks
The tech-heavy NASDAQ Composite surged on Thursday, February 29th, 2024 closing at an all-time high for the first time since November 2021. Bolstered by rallying semiconductor and artificial intelligence stocks, the index gained 0.9% ($144.18) to close at $16,091.92. The milestone caps off a strong February for the Nasdaq, with gains of over 6% for the month. It marks the index’s best monthly performance since 2015.
Chip Stocks Shine
Amid Thursday’s rally, Semiconductor stocks were standouts as confidence continues to strengthen around artificial intelligence and its impacts on the tech sector. NVIDIA Corporation, a leader in AI chips, rose 1.87% during trading to close at $791.12. Competitor Advanced Micro Devices hit 52-week highs, gaining over 9% on the day. The company has strongly profited from demand for AI servers, according to industry bellwether Dell.
Other chip names joining the advance included ARM Holdings, up by 5.36%, and Super Micro Computer, which jumped over 8% to add to its more than 200% year-to-date climb. The Nasdaq’s gain on Thursday was led by these semiconductor shares. The tech sector more broadly has found its footing again in recent months, after a brutal 2022 marred by surging interest rates and recession fears.
Inflation Data Reassures Investors
Stocks received a boost earlier in the day from a key inflation report that largely matched economist expectations. The Personal Consumption Expenditures price index rose 2.8% in January from a year earlier. This marked the lowest annual increase since a 2.2% increase in March 2021.
The reading reinforced the narrative of cooling inflation pressures that have driven markets higher to start 2024. Investors welcomed the data, as Federal Reserve officials have stressed a need to see more definitive signs of easing before committing to rate cuts.
Most Feel Cuts Still on Table
While the inflation gauge ticked up 0.4% on a monthly basis in January, analysts noted the overall downward trend remains intact as the increase isn’t believed to fundamentally alter the inflation landscape for the Fed.
“Fed officials have signaled they do not need better news on inflation to cut rates, just continued good news,” said Michael Pearce, deputy chief economist at Oxford Economics. “With the trend in inflation still downward, gradual rate cuts this year are still on the table.” Markets hardly flinched following the report. The S&P 500 also closed at a record high, while the Dow eked out a slim gain.
Investors Continue Embracing Risk
The continued rally indicates investors are embracing risk assets again after last year’s pummeling. Alongside surging AI and tech shares, speculative corners of the market like cryptocurrencies and meme stocks have charged higher in 2024’s opening weeks.
Bitcoin remained above $62,000 on Thursday, nearing the all-time high of around $69,000 last seen in November 2021. The recent crypto surge has lifted related stocks.
Meanwhile, GameStop and AMC Entertainment – poster children for the meme stock phenomenon of early 2021 – have added to their recovering share prices so far this year.
NASDAQ Leads Broad Gains
With January now in the books, the Nasdaq and S&P 500 both enjoyed their strongest February showings since 2015 as the blue-chip Dow also rose over 2% for the month. The Nasdaq’s 6% February 29th, 2024 advance led the pack. As tech and growth stocks regain their momentum, the index appears poised to build on its record close and continue leading markets higher.
Investor sentiment has clearly shifted to start 2024, despite ongoing concerns around inflation, interest rates and the possibility of a recession. For now, the bulls are back in charge.
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The tech-heavy NASDAQ Composite surged on Thursday, February 29th, 2024 closing at an all-time high for the first time since November 2021. Bolstered by rallying semiconductor and artificial intelligence stocks, the index gained 0.9% ($144.18) to close at $16,091.92. The milestone caps off a strong February for the Nasdaq, with gains of over 6% for the month. It marks the index’s best monthly performance since 2015.
Chip Stocks Shine
Amid Thursday’s rally, Semiconductor stocks were standouts as confidence continues to strengthen around artificial intelligence and its impacts on the tech sector. NVIDIA Corporation, a leader in AI chips, rose 1.87% during trading to close at $791.12. Competitor Advanced Micro Devices hit 52-week highs, gaining over 9% on the day. The company has strongly profited from demand for AI servers, according to industry bellwether Dell.
Other chip names joining the advance included ARM Holdings, up by 5.36%, and Super Micro Computer, which jumped over 8% to add to its more than 200% year-to-date climb. The Nasdaq’s gain on Thursday was led by these semiconductor shares. The tech sector more broadly has found its footing again in recent months, after a brutal 2022 marred by surging interest rates and recession fears.
Inflation Data Reassures Investors
Stocks received a boost earlier in the day from a key inflation report that largely matched economist expectations. The Personal Consumption Expenditures price index rose 2.8% in January from a year earlier. This marked the lowest annual increase since a 2.2% increase in March 2021.
The reading reinforced the narrative of cooling inflation pressures that have driven markets higher to start 2024. Investors welcomed the data, as Federal Reserve officials have stressed a need to see more definitive signs of easing before committing to rate cuts.
Most Feel Cuts Still on Table
While the inflation gauge ticked up 0.4% on a monthly basis in January, analysts noted the overall downward trend remains intact as the increase isn’t believed to fundamentally alter the inflation landscape for the Fed.
“Fed officials have signaled they do not need better news on inflation to cut rates, just continued good news,” said Michael Pearce, deputy chief economist at Oxford Economics. “With the trend in inflation still downward, gradual rate cuts this year are still on the table.” Markets hardly flinched following the report. The S&P 500 also closed at a record high, while the Dow eked out a slim gain.
Investors Continue Embracing Risk
The continued rally indicates investors are embracing risk assets again after last year’s pummeling. Alongside surging AI and tech shares, speculative corners of the market like cryptocurrencies and meme stocks have charged higher in 2024’s opening weeks.
Bitcoin remained above $62,000 on Thursday, nearing the all-time high of around $69,000 last seen in November 2021. The recent crypto surge has lifted related stocks.
Meanwhile, GameStop and AMC Entertainment – poster children for the meme stock phenomenon of early 2021 – have added to their recovering share prices so far this year.
NASDAQ Leads Broad Gains
With January now in the books, the Nasdaq and S&P 500 both enjoyed their strongest February showings since 2015 as the blue-chip Dow also rose over 2% for the month. The Nasdaq’s 6% February 29th, 2024 advance led the pack. As tech and growth stocks regain their momentum, the index appears poised to build on its record close and continue leading markets higher.
Investor sentiment has clearly shifted to start 2024, despite ongoing concerns around inflation, interest rates and the possibility of a recession. For now, the bulls are back in charge.
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