The Nasdaq Composite rose to an all-time high Friday, surpassing its 2021 record, as investors bet that megacap technology stocks were the best way to play slowing inflation and a coming artificial intelligence boom.
The tech-heavy Nasdaq advanced 1.14 per cent to 16,274.94, notching a new high of 16,302.24 during the session. A day earlier, the index closed at its first record since November 2021. The S&P 500 added 0.80 per cent to 5,137.08 for its first close above the 5,100 threshold. The Dow Jones Industrial Average gained 90.99 points, or 0.23 per cent, to 39,087.38.
Stocks gained even as troubled regional bank New York Community Bancorp declined 25.9 per cent after the lender announced a leadership change and disclosed issues with its internal controls. The bank is already down more than 65 per cent in 2024, with some investors concerned it is a sign of a wider real estate shakeout ahead.
Chipmaking giant Nvidia, which has led the tech rally by surging more than 260 per cent over the last 12 months, was up another 4 per cent Friday. Meta also jumped more than 2 per cent for the day.
Enthusiasm over AI has lifted mega-cap tech stocks – and the broader market – through 2023 and into this year. Slowing inflation, and the Federal Reserve’s ensuing pivot toward rate cuts forecasted for later in 2024, have also contributed to the Nasdaq’s recovery from a difficult 2022.
On a weekly basis, the Nasdaq added 1.74 per cent, while the S&P 500, which also popped to a record close on Thursday, advanced 0.95 per cent. Both indexes notched their seventh positive week over the last eight. The 30-stock Dow is the laggard, down 0.11 per cent.
The Nasdaq was the last of the major U.S. stock benchmarks to reach a record close this year, when it achieved the milestone Thursday.
In commodity-related news, nickel prices are unlikely to rise much above $18,000 a ton as Indonesia will ensure the market remains well supplied to keep costs lower for EV manufacturers, as per Septian Hario Seto, a Deputy at the Coordinating Ministry for Maritime Affairs and Investment. He also added that the purpose for the government is to find an equilibrium so that nickel demand is well supplied. Recall that nickel prices declined by around 45 per cent during last year primarily due to concerns around oversupply.
Turning to US sectors, all closed higher overnight expect for Consumer Staples, Financials and Utilities. Tech was the best performer.
Futures
The SPI futures are pointing to a 0.1 per cent gain.
Currency
One Australian dollar at 8.45am was buying 65.25 US cents.
Commodities
Gold gained 2.00 per cent. Silver climbed 2.1 per cent. Copper added 0.38 per cent. Oil jumped 2.18 per cent.
Figures around the globe
European markets closed higher. London’s FTSE gained 0.69 per cent, Frankfurt added 0.32 per cent, and Paris closed 0.09 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei gained 1.90 per cent, Hong Kong’s Hang Seng added 0.47 per cent and China’s Shanghai Composite gained 0.39 per cent..
On Friday, the Australian share market closed 0.61 per cent higher at 7,745.61.
Ex-dividends
Australian Ethical (ASX:AEF) is paying 3 cents fully franked
Apiam Animal Health (ASX:AHX) is paying 1 cent fully franked
Altium Limited (ASX:ALU) is paying 30 cents 13 per cent franked
Ashley Services Grp (ASX:ASH) is paying 0.5 cents fully franked
Baby Bunting Grp Ltd (ASX:BBN) is paying 1.8 cents fully franked
Big Riv Indust Ltd (ASX:BRI) is paying 5.5 cents fully franked
Fleetwood Ltd (ASX:FWD) is paying 2.5 cents fully franked
GR Engineering Ltd (ASX:GNG) is paying 9 cents fully franked
HiTech Group Aust. (ASX:HIT) is paying 5 cents fully franked
Ironbark Capital Ltd (ASX:IBC) is paying 1.1 cents fully franked
Kkr Credit Inc Fund (ASX:KKC) is paying 1.67 cents unfranked
McPherson’s Ltd (ASX:MCP) is paying 2 cents fully franked
Nick Scali Limited (ASX:NCK) is paying 35 cents fully franked
Newmont Corporation (ASX:NEM) is paying 26.6809 cents unfranked
Netwealth Group (ASX:NWL) is paying 14 cents fully franked
Probiotec Limited (ASX:PBP) is paying 3.5 cents fully franked
Propel Funeral (ASX:PFP) is paying 7.2 cents fully franked
Peoplein Limited (ASX:PPE) is paying 3 cents fully franked
REA Group (ASX:REA) is paying 87 cents fully franked
Resimac Grp Ltd (ASX:RMC) is paying 3.5 cents fully franked
Ryder Capital Ltd (ASX:RYD) is paying 4 cents fully franked
Steadfast Group Ltd (ASX:SDF) is paying 6.75 cents fully franked
Solvar Limited (ASX:SVR) is paying 5 cents fully franked
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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