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U.S. stock ended higher on Thursday, with the Nasdaq and S&P 500 closing at new record highs despite personal consumption expenditure (PCE) reading rising in January. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1% or 47.37 points to finish at 38,996.39 points.
The S&P 500 jumped 0.5% or 26.52 points, to close at 5,096.27 points, hitting a new record close. Tech, communication services and real estate stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) gained 1.1%, while the Communication Services Select Sector SPDR (XLC) rose 0.9%. The Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) each advanced 0.8%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 0.9% or 144.18 points to finish at 16,091.92 points, registering its first record close since November 2021 and also snapping the index’s 569-session streak without a record close.
The fear-gauge CBOE Volatility Index (VIX) was down 3.18% to 13.40. Advancers outnumbered decliners on the NYSE by a 2.7-to-1 ratio. On Nasdaq, a 1.57-to-1 ratio favored advancing issues. A total of 13.88 billion shares were traded on Thursday, higher than the last 20-session average of 11.78 billion.
Tech Stocks Drive Market Rally
Markets rallied on the last day of February, making it yet another impressive month for Wall Street. Thursday’s rally was once again driven by the ongoing enthusiasm surrounding artificial intelligence that has been boosting major tech stocks and the broader market.
Big tech companies such as Amazon.com, Inc ((AMZN - Free Report) ), Apple, Inc ((AAPL - Free Report) ), Microsoft Corporation ((MSFT - Free Report) ), Meta Platforms, Inc. (META), Alphabet, Inc ((GOOGL - Free Report) ) and Tesla, Inc ((TSLA - Free Report) ) have been playing a major role in lifting the Nasdaq and bailing it out from the lows of 2022.
These stocks have been helping the broader tech sector, which have been on a rally this year.
Inflation Reading Raises Rate Cut Hopes
Another factor behind Thursday’s rally was the renewed optimism surrounding rate cuts following fresh inflation reading. The Commerce Department reported ahead of the opening bell that the PCE price index rose 0.3% month over month in January and 2.4% year over year. January inflation rose at its fastest pace in four months but came in line with economists’ expectations.
Core PCE, which excludes the volatile energy and food costs, increased 0.4% sequentially in January and 2.8% from a year ago, which also came in line with the consensus estimates.
Although the inflation reading was hotter than expected, it was in line with expectations, which once again raised optimism among investors that the Fed would not delay much in going ahead with the first rate cut.
Economic Data
In other economic data released on Thursday, personal income rose 1% month over month in January, surpassing expectations of a rise of 0.3%. Personal spending decreased 0.1%, lower than the consensus estimate of 0.2%.
The Labor Department reported that jobless claims totaled 215,000 for the week ending Feb 24, increasing 13,000 from the previous week’s revised level of 202,000. The four-week moving average was 212,500, a decrease of 3,000 from the previous week’s revised average of 215,500.
Continuing claims came in at 1,905,000, an increase of 45,000 from the previous week’s revised level of 1,860,000. The 4-week moving average was 1,879,750 an increase of 2,750 from the previous week's revised average of 1,877,000.
Pending home sales unexpectedly declined in January owing to rising mortgage rates. Pending home sales fell 4.9% month over month in January.
Monthly Roundup
Thursday’s session saw the end of February trading and also a fourth straight positive month for all three major indexes. The Dow added 846.09 points in February, ending 2.2% higher for the month.
The S&P 500 jumped 250.62 points for the month to close February 5.2% higher. The index has now gained 902.47 points or 21.5% in the past four months. The tech-heavy Nasdaq ended the month 6.1% higher.
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Stock Market News for Mar 1, 2024
U.S. stock ended higher on Thursday, with the Nasdaq and S&P 500 closing at new record highs despite personal consumption expenditure (PCE) reading rising in January. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1% or 47.37 points to finish at 38,996.39 points.
The S&P 500 jumped 0.5% or 26.52 points, to close at 5,096.27 points, hitting a new record close. Tech, communication services and real estate stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) gained 1.1%, while the Communication Services Select Sector SPDR (XLC) rose 0.9%. The Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) each advanced 0.8%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 0.9% or 144.18 points to finish at 16,091.92 points, registering its first record close since November 2021 and also snapping the index’s 569-session streak without a record close.
The fear-gauge CBOE Volatility Index (VIX) was down 3.18% to 13.40. Advancers outnumbered decliners on the NYSE by a 2.7-to-1 ratio. On Nasdaq, a 1.57-to-1 ratio favored advancing issues. A total of 13.88 billion shares were traded on Thursday, higher than the last 20-session average of 11.78 billion.
Tech Stocks Drive Market Rally
Markets rallied on the last day of February, making it yet another impressive month for Wall Street. Thursday’s rally was once again driven by the ongoing enthusiasm surrounding artificial intelligence that has been boosting major tech stocks and the broader market.
Thursday’s rally was led by Advanced Micro Devices, Inc. ((AMD - Free Report) ), which rose 9.1%, while NVIDIA Corporation’s ((NVDA - Free Report) ) ended up 1.9%. NVIDIA sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Big tech companies such as Amazon.com, Inc ((AMZN - Free Report) ), Apple, Inc ((AAPL - Free Report) ), Microsoft Corporation ((MSFT - Free Report) ), Meta Platforms, Inc. (META), Alphabet, Inc ((GOOGL - Free Report) ) and Tesla, Inc ((TSLA - Free Report) ) have been playing a major role in lifting the Nasdaq and bailing it out from the lows of 2022.
These stocks have been helping the broader tech sector, which have been on a rally this year.
Inflation Reading Raises Rate Cut Hopes
Another factor behind Thursday’s rally was the renewed optimism surrounding rate cuts following fresh inflation reading. The Commerce Department reported ahead of the opening bell that the PCE price index rose 0.3% month over month in January and 2.4% year over year. January inflation rose at its fastest pace in four months but came in line with economists’ expectations.
Core PCE, which excludes the volatile energy and food costs, increased 0.4% sequentially in January and 2.8% from a year ago, which also came in line with the consensus estimates.
Although the inflation reading was hotter than expected, it was in line with expectations, which once again raised optimism among investors that the Fed would not delay much in going ahead with the first rate cut.
Economic Data
In other economic data released on Thursday, personal income rose 1% month over month in January, surpassing expectations of a rise of 0.3%. Personal spending decreased 0.1%, lower than the consensus estimate of 0.2%.
The Labor Department reported that jobless claims totaled 215,000 for the week ending Feb 24, increasing 13,000 from the previous week’s revised level of 202,000. The four-week moving average was 212,500, a decrease of 3,000 from the previous week’s revised average of 215,500.
Continuing claims came in at 1,905,000, an increase of 45,000 from the previous week’s revised level of 1,860,000. The 4-week moving average was 1,879,750 an increase of 2,750 from the previous week's revised average of 1,877,000.
Pending home sales unexpectedly declined in January owing to rising mortgage rates. Pending home sales fell 4.9% month over month in January.
Monthly Roundup
Thursday’s session saw the end of February trading and also a fourth straight positive month for all three major indexes. The Dow added 846.09 points in February, ending 2.2% higher for the month.
The S&P 500 jumped 250.62 points for the month to close February 5.2% higher. The index has now gained 902.47 points or 21.5% in the past four months. The tech-heavy Nasdaq ended the month 6.1% higher.