Stock market today: S&P 500, Dow hit fresh records as Wall Street ends Nvidia-fueled rally week

Stock market today: S&P 500, Dow hit fresh records as Wall Street ends Nvidia-fueled rally week

Stock Market Performance

  • The stock market is experiencing a slight decline heading into the closing bell on Wall Street, but the Dow and S&P 500 are still on track for record closes.
  • The S&P 500 is set for a gain of over 1.5% this week, with only two down weeks since the beginning of November.
  • Other companies, such as AMD, Intel, Meta, JPMorgan, Workday, Broadcom, and American Express, also reached intraday record highs during the session.
  • The market closed on a mixed note this week, but overall it was a strong week due to positive earnings from NVIDIA.
  • Sectors that outperformed this week include materials, staples, healthcare, financials, and industrials, with financials, industrials, and healthcare reaching record highs.
  • Home builders, Chinese stocks, Korean stocks, and biotech were among the leading sectors this week.
  • Unprofitable tech, solar energy, and IPOs were among the losing sectors this week.
  • Software stocks mostly closed down, with Adobe and Teleduck being the worst performers.
  • Semiconductors performed better than software stocks.

NVIDIA's Performance and Impact

  • NVIDIA's blockbuster earnings report this week drove the company to a $2 trillion valuation, making it the biggest one-day gain in market cap in history.
  • Short sellers incurred significant losses due to NVIDIA's surge, with an estimated $3 billion in paper losses.
  • Despite the overall market's lack of significant movement, NVIDIA continues to rise, with many analysts still seeing potential for further growth.

Federal Reserve and Market Outlook

  • Investors are now shifting their focus to the Federal Reserve's next move, with Tim Girard, Chief Investment Officer at Girard, providing insights on the market and the role of large-cap tech companies.
  • The Federal Reserve's passive restrictions, such as the continuation of the balance sheet unwind, could potentially put the economy in a challenging position.

Healthcare Sector

  • The technology sector remains attractive, with the healthcare sector being the largest overweight.
  • Healthcare is expected to reaccelerate growth, with positive signs in inventories and venture capital lending.
  • Tools and diagnostics companies, such as Veeva Systems, are favored due to increased capital expenditure spending in healthcare.
  • The upcoming election and potential changes in regulation pose headwinds for the healthcare sector, but the impact on corporate earnings may not be significant until the second year of the presidency.

Block (SQ) Performance and Strategy

  • Block shares are soaring after the company raised its full-year profit guidance by more than $2 million.
  • Block (SQ) stock surged after reporting better-than-expected Q1 results, beating guidance and showing growth in key units like Square, Cash App, and Cash App joining to $3.9 billion.
  • Investors and analysts are pleased with Block's cost-cutting measures, with the company aiming to operate below a workforce cap of 12,000 employees.
  • Block is being compared to Meta in terms of its approach to cost inefficiencies, with analysts noting that this shift has helped the company move away from being neither profitable enough nor growing enough.

Rivian (RIVN) Challenges

  • Rivian (RIVN) shares dropped significantly as UBS slashed its price target from $24 to $8 due to concerns over slowing demand and production issues.
  • Rivian's production target for the full year came in well below estimates, raising questions about demand and the high prices of its vehicles.
  • Analysts are concerned that Rivian and Lucid (LCID) need to introduce cheaper models sooner to address affordability concerns and boost sales.

Carvana (CVNA) Resurgence

  • Carvana (CVNA) stock surged after the used car platform reported its first-ever annual profit and issued better-than-expected guidance.
  • Carvana's CEO highlighted the company's resilience in navigating challenging times over the past two years and emphasized its restructuring efforts.
  • The company announced a debt exchange in 2023 and experienced layoffs, but it posted a net income of $150 million for 2023, aided by a gain from debt reduction.
  • Carvana's positive developments triggered a short squeeze, with the stock price rising significantly due to its high short interest position of 32% of the float.

Finance's Criminal Penalty and Cryptocurrency Market

  • Finance's $4.3 billion payment has been approved by a judge as part of the plea deal reached last year, making it one of the largest criminal penalties in U.S. history against the world's biggest cryptocurrency exchange.
  • Despite the ruling, the Finance token has only seen a slight dip of 1.36% today and has experienced a 61% increase over the past three months.
  • Bitcoin is down 1% over

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