Broker Check
Weekly Market Insights: Stocks Hit New Highs

Weekly Market Insights: Stocks Hit New Highs

February 26, 2024

Investors' belief that AI can transform the US economy propelled stocks to new heights last week, with an AI semiconductor company leading the charge.

Stocks Rally to Record Highs

Stocks traded within a narrow range for the first half of the short week due to the lack of economic data. Investors were eagerly waiting for the earnings report of a key company that creates chips powering the artificial intelligence operations of many firms.

On Thursday, Nvidia Corp. reported a strong Q4 corporate report and a long-term message, which drove the S&P 500 and Nasdaq to new closing highs. Nvidia's market cap rose by $277 billion on the news, reaching a $2 trillion valuation. To put that into perspective, Nvidia's market cap is now roughly equal to Canada's economy. Its 16% gain on Thursday was the largest one-day market cap increase by any U.S. company.

Please note that the companies mentioned in this text are for illustrative purposes only and should not be considered a solicitation for the purchase or sale of any company connected with AI.

Source: YCharts.com, February 24, 2024. Weekly performance is measured from Friday, February 16 to Friday, February 23.
ROC 5 = the rate of change in the index for the previous 5 trading days.
TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.
Treasury note yield is expressed in basis points.

Inflection Point?

Investors reflected on Nvidia's sudden rise in market capitalization and wondered if this could be a turning point for the field of artificial intelligence. Nvidia is the global leader in providing AI computer chips, and many influential companies rely on their technology to power their own AI initiatives. Investors believe that this could be just the beginning of AI's impact, and anticipate it to be a significant economic force beyond 2024.

This Week: Key Economic Data

Monday: New Home Sales. Two-year Treasury Note Auction.

Tuesday: Durable Goods. Case-Shiller Home Price Index. Consumer Confidence.

Wednesday: GDP report (second estimate). Petroleum Status Report.

Thursday: Jobless Claims. Personal Income and Outlays.

Source: Investors Business Daily - Econoday economic calendar; February 19, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

This Week: Companies Reporting Earnings

Monday: Workday, Inc. (WDAY), Zoom Video Communications, Inc. (ZM)

Tuesday: Dell Technologies Inc. (DELL), Agilent Technologies, Inc. (A), eBay Inc. (EBAY)

Wednesday: Salesforce Inc. (CRM), HP Inc. (HPQ)

Thursday: Hewlett Packard Enterprise Company (HPE)

Source: Zacks, February 19, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

___________________________________________________________________

Food For Thought

"All you need in the world is love and laughter – to have love in one hand, and laughter in the other."

– August Wilson

___________________________________________________________________

Tax Tip

Be on Alert for IRS Scams

During this tax season, it is important to be aware of tax-related scams. The IRS has warned about the rise of "phishing" scams that usually come in the form of fake phone calls and emails pretending to be from the IRS.

Remember that the IRS will never:

- Call you without sending an official notice first.

- Ask you to immediately pay your taxes over the phone.

- Request your credit or debit card information over the phone.

- Threaten to involve law enforcement or immigration services to arrest you for failing to pay.

Please note that this information is not intended to replace specific tax advice tailored to your individual needs. It is recommended that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov5

___________________________________________________________________

Healthy Living Tip


 

The concept of self-care has gained popularity over the last decade, emphasizing the importance of loving oneself. The idea behind it is that by taking care of ourselves intentionally, we can lead a happier and healthier life, which in turn benefits the people around us, including our romantic partners.

However, loving ourselves is not always easy. It does not mean being overly indulgent but making choices that support our overall well-being. For some people, this might mean taking a break and relaxing when they are stressed, while for others, it could involve creating a to-do list to organize and complete tasks to combat procrastination. Being self-aware and cheering ourselves on when we are too harsh or introspecting to improve ourselves when we are shortsighted are some of the intentional actions we can take to be our best selves. There are many more things we can do to be our best selves, and it's up to us to take action.

Tip adapted from PsychCentral.com6

___________________________________________________________________

Riddle Of The Week

Kristi and David live at opposite ends of a metro area but attend the same college. David left for campus 30 minutes before Kristi, and they met at a coffee house. Who was closer to campus when they met?

  

Last week’s riddle: What can explode slowly, with no smoke or flame?Answer: A population.

___________________________________________________________________

Photo Of The Week

A sea otter floating.

 

Footnotes and Sources

1. MarketWatch.com, February 22, 2024.

2. US News & World Report, February 22, 2024.

3. CNBC, February 21, 2024.

4. The Wall Street Journal, February 22, 2024.

5. IRS.gov, November 20, 2023

6. PsychCentral.com, 2024.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

Copyright 2024 FMG Suite.