On Wednesday, Wall Street closed sharply higher as ride-hailing services Lyft and Uber experienced a surge in value. Meanwhile, Nvidia overtook Alphabet as the third most valuable company in the U.S. stock market.
With its shares rising 2.5%, Nvidia’s market capitalization surpassed Alphabet’s ahead of the leading AI chipmaker’s quarterly results the following week. The company currently has a stock market value of $1.825 trillion.
Uber’s record-breaking 15% gain was driven by a $7 billion share buyback plan.
Following a 35% increase in profits and an announcement that it would start generating positive free cash flow in 2024, Lyft’s stock shot up.
Tesla also gained more than 2%, and Meta Platforms helped boost the S&P 500.
At the end of the session, the S&P 500 was up 0.96% at 5,000.62 points.
The Dow Jones Industrial Average increased 0.40% to 38,424.27 points, while the Nasdaq gained 1.30% to 15,859.15 points.
In addition to the server equipment seller’s recent gains related to AI, Super Micro Computer saw an increase of over 11%. This contributed to the Russell 200’s 2.4% one-day jump, which was its largest since mid-December.
Tuesday saw a sharp decline in Wall Street indexes, with the blue-chip Dow experiencing its worst day in 11 months. This was due to data indicating that core consumer prices in January remained almost twice the Federal Reserve’s 2% target, which caused investors to reevaluate their expectations for rate cuts.
The market ought to fear what the Fed fears, in my opinion, regardless of when that first cut occurs. The Fed is afraid that it will have to hike rates if it cuts too soon. That would be disastrous for this rally, according to Jake Dollarhide, CEO of Tulsa, Oklahoma-based Longbow Asset Management.
In a somewhat consoling statement, Chicago Fed President Austan Goolsbee stated that even if price increases prove to be slightly faster than anticipated over the coming months, the central bank’s 2% inflation target would still be reached.
A recent Wall Street rally that has driven the S&P 500 to all-time highs has been fueled by expectations that the Fed will cut interest rates this year.
The CME FedWatch tool revealed that interest rate futures indicate most traders anticipate the Fed will start reducing rates by its June policy meeting.
After reporting a surprising profit for the fourth quarter, Robinhood Markets surged 13%.
As the market value of bitcoin surpassed $1 trillion for the first time since November 21, cryptocurrency stocks Coinbase, Marathon Digital, and Riot all saw increases of more than 13%.
Nine of the eleven S&P 500 sector indexes saw increases, with the industrials leading the way at 1.67% and communication services coming in second at 1.42%.
In the S&P 500, rising issues outnumbered declining ones by a ratio of 3.6 to 1.
The Nasdaq saw 92 new highs and 68 new lows, while the S&P 500 saw 37 new highs and 4 new lows.
Also Read: Japan Losses The Crown Of World’s Third-largest Economy
:-Reuters
