Wall Street opens higher and is on track for another winning week, with technology stocks leading the gains once again. Nvidia, in particular, saw a significant increase after reporting strong demand for its semiconductors used in AI applications. The S&P 500 was up 0.4%, the Nasdaq composite was up 0.5%, and the Dow added 0.3%. Intuitive Machines, the company behind the recent U.S. lunar landing, also saw a sharp rise. Treasury yields, however, slipped.
Futures for the S&P 500 and the Dow Jones Industrial Average pointed higher early Friday, following Nvidia’s impressive results that set off a tech rally and pushed Wall Street to another record high. Nvidia rose another 2% in premarket trading, building on Thursday’s 16.4% gain.
While Nvidia’s success lifted other chipmakers and related companies, Booking.com faced a setback, tumbling 8.5% in premarket trading despite beating fourth-quarter sales and profit targets. Live Nation, on the other hand, surged 4.6% after reporting strong 2023 sales and expressing optimism about continued demand for live concerts in 2024.
Technology stocks have been the driving force behind the market’s recent rally, supported by solid earnings reports from key companies in the sector. However, last week’s economic data, which showed higher-than-expected inflation and a sharp decline in retail sales, raised concerns about the timing of potential interest rate hikes by the Federal Reserve.
Looking ahead, the focus will be on next week’s inflation report and the Fed’s preferred measure of personal consumption and expenditures. In Europe, markets were mixed, with Germany’s DAX adding slightly, France’s CAC 40 gaining, and the UK’s FTSE 100 remaining steady. In Asia, markets were mostly higher, with Tokyo’s markets closed for a holiday after reaching an all-time high.
The ongoing real estate market struggles in China, where new home prices in first-tier cities continued to fall, have weighed on investor confidence. Elsewhere, U.S. crude oil prices dipped, while the dollar was relatively stable against major currencies.
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