Uber, Lyft, and Nvidia drive Wall Street higher
February 14, 2024 – 11:31 AM PST
(Reuters) – Wall Street soared today as ride-hailing giants Lyft and Uber experienced a remarkable rally, while Nvidia briefly surpassed Alphabet to become the third most valuable company in the U.S. stock market.
Nvidia (NVDA.O) surpassed Alphabet’s (GOOGL.O) market capitalization ahead of the dominant AI chipmaker’s highly anticipated quarterly results next week. Nvidia’s shares saw a 1.3% increase, while the Google-parent added 0.1%.
Uber (UBER.N) experienced a staggering surge of almost 12% and reached a record high, fueled by a $7 billion share buyback plan.
Lyft (LYFT.O) soared over 30% after surpassing profit estimates and announcing its plans to generate positive free cash flow for the first time in 2024.
Contributing to the rise of the S&P 500, Meta Platforms (META.O) rose by 2.1% and Tesla (TSLA.O) added 1.2%.
Yesterday, Wall Street indexes experienced a significant drop, reaching over one-week lows, with the Dow (.DJI) posting its worst day in 11 months. This was triggered by data revealing that core consumer prices in January remained nearly double the Fed’s 2% target, leading investors to reassess their rate cut expectations.
“Regardless of when that first cut is, I think the market should fear what the Fed fears. What the Fed fears is cutting too soon and having to raise rates. That would be catastrophic for this rally,” said Jake Dollarhide, Chief Executive Officer of Longbow Asset Management in Tulsa, Oklahoma.
Providing some relief, Chicago Fed President Austan Goolsbee stated that the path back to the central bank’s 2% inflation target would still be on track, even if price increases run slightly hotter-than-expected over the next few months.
Expectations of a Fed interest rate cut this year have fueled a recent rally on Wall Street, propelling the S&P 500 to record highs.
According to interest rate futures, traders mostly anticipate the Fed to begin cutting rates by its June policy meeting, as indicated by the CME FedWatch tool.
Out of the 11 S&P 500 sector indexes, nine experienced gains, with industrials (.SPLRCI) leading the way with a 1.3% increase, followed by a 0.91% gain in communication services (.SPLRCL).
The S&P 500 reached 4,979.83 points, marking a 0.54% increase.
The Nasdaq gained 0.83% and reached 15,785.76 points, while the Dow Jones Industrial Average saw a 0.12% increase, reaching 38,318.97 points.
The small-caps Russell 2000 index (.RUT) jumped by 1.9%.
Robinhood Markets (HOOD.O) soared over 10% following a surprising fourth-quarter profit.
Crypto stocks Coinbase (COIN.O), Marathon Digital (MARA.O), and Riot (RIOT.O) experienced surges of over 10% as bitcoin’s market value crossed $1 trillion for the first time since November 21.
Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) by a ratio of 2.7-to-one.
The S&P 500 recorded 29 new highs and 3 new lows, while the Nasdaq recorded 69 new highs and 64 new lows.
Reporting by Johann M Cherian and Ankika Biswas in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Arun Koyyur, Maju Samuel, and Aurora Ellis
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How significant is Nvidia’s brief surpassing of Alphabet in market capitalization?
The Wall Street rally continued today as Lyft and Uber experienced impressive surges, and Nvidia briefly overtook Alphabet to become the third most valuable company in the U.S. stock market. This comes ahead of Nvidia’s highly anticipated quarterly results. Uber saw a staggering 12% increase, reaching a record high, fueled by a $7 billion share buyback plan. Lyft also soared over 30% after exceeding profit estimates and announcing plans to generate positive free cash flow in 2024.
Nvidia’s rise in market capitalization is significant as it surpassed Alphabet, the parent company of Google. Nvidia’s shares saw a 1.3% increase, while Alphabet’s shares added 0.1%. This development comes just before Nvidia’s quarterly results, which are highly anticipated by investors.
Uber’s remarkable surge can be attributed to its announcement of a $7 billion share buyback plan. This move has instilled confidence in investors and has led to a surge in the company’s stock price. The record-breaking high reached by Uber demonstrates the strong market demand for ride-hailing services.
Similarly, Lyft’s stock experienced a significant increase of over 30% after surpassing profit estimates and announcing plans to generate positive free cash flow in 2024. This positive news has fueled investors’ optimism about the future prospects of the company.
Contributing to the rise of the S&P 500, Meta Platforms rose by 2.1% and Tesla added 1.2%. These companies’ positive performance has further strengthened the overall market sentiment.
Yesterday, Wall Street indexes experienced a significant drop, reaching over one-week lows. The Dow posted its worst day in 11 months. This decline was triggered by data revealing that core consumer prices in January remained nearly double the Federal Reserve’s 2% target. This led investors to reassess their rate cut expectations and resulted in a temporary downturn in the market.
The Federal Reserve’s cautious approach to interest rate cuts reflects its concern about cutting rates too soon and potentially having to raise rates in the future. This cautious approach is shared by market analysts who believe that raising rates prematurely could have catastrophic consequences for the current market rally.
However, some relief was provided by Chicago Fed President Austan Goolsbee, who stated that the path back to the central bank’s 2% inflation target would still be on track, even if price increases run slightly hotter-than-expected over the next few months. This statement reassured investors and helped stabilize market sentiment.
The expectation of a Fed interest rate cut this year has fueled a recent rally on Wall Street, propelling the S&P 500 to record highs. According to interest rate futures, traders mostly anticipate the Fed to begin cutting rates by its June policy meeting.
In terms of sector performance, nine out of the 11 S&P 500 sector indexes experienced gains, with industrials leading the way with a 1.3% increase, followed by a 0.91% gain in communication services. This widespread growth across sectors indicates a positive market sentiment and confidence in the overall economy.
The S&P 500 reached 4,979.83 points, marking a 0.54% increase. The Nasdaq gained 0.83% and reached 15,785.76 points, while the Dow Jones Industrial Average saw a 0.12% increase, reaching 38,318.97 points. The small-caps Russell 2000 index jumped by 1.9%.
In other news, Robinhood Markets saw a surge of over 10% following a surprising fourth-quarter profit. Additionally, crypto stocks Coinbase, Marathon Digital, and Riot experienced surges of over 10% as bitcoin’s market value crossed $1 trillion for the first time since November 21.
The market’s overall performance today was positive, with advancing issues outnumbering falling ones within the S&P 500 by a ratio of 2.7-to-one. The S&P 500 recorded 29 new highs and 3 new lows, while the Nasdaq recorded 69 new highs and 64 new lows.
In conclusion, today’s Wall Street rally was driven by impressive performances from Lyft and Uber, as well as Nvidia’s brief surpassing of Alphabet in market capitalization. This positive market sentiment was further strengthened by the gains in Meta Platforms and Tesla. Despite a temporary downturn yesterday, the market demonstrated resilience and recovered today. The expectation of a Fed interest rate cut and positive remarks from Fed officials contributed to the overall positive market sentiment.
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