S&P, Dow hit record highs as Nvidia ignites global stock rally

US stocks soared on Thursday, breaching record highs, powered by blockbuster earnings from AI darling Nvidia (NVDA).

The tech-heavy Nasdaq (^IXIC) shot up nearly 3% on the heels of the chipmaker’s results, while the S&P 500 (^GSPC) jumped about 2.2%. The Dow Jones Industrial Average (^DJI) popped almost 1.2%, or more than 400 points.

Both the S&P 500 and Dow Jones closed at record highs on Thursday. The Nasdaq Composite closed just shy of a record high while the Nasdaq 100 (^NDX) rose more than 3% to an all-time high. The last time the Nasdaq 100 moved more than 3% and hit a record high on the same day was in March of 2000, per Bespoke Investment Group.

Stocks powered higher as Wall Street celebrated Nvidia’s blowout quarterly results, which beat sky-high expectations. That reassured investors about the strength of the AI mania that has lifted US stock gauges to record highs.

The chipmaker’s CEO said generative AI has “hit the tipping point” as it reported a 265% rise in revenue and laid out very upbeat guidance, a sign demand for AI hardware is booming. Nvidia shares climbed about 16% to hit a record high. The stock added $277 billion to its market cap on Thursday, the largest single day increase ever.

The bullish mood spread worldwide, with chip stock gains helping Japan’s Nikkei 225 (^N225) index to finally beat a record that had stood since 1989. Similarly, techs boosted the pan-European Stoxx 600 (^STOXX) to a fresh all-time intraday high.

Amid the ebullience, an assessment of the Fed’s next move appeared to be on the back burner. The central bank’s latest minutes showed most officials want to tread carefully on rate cuts, seeing risks in moving too quickly.

Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards

Live12 updates

• Thu, February 22, 2024 at 4:14 PM EST
  

  The Nasdaq 100 just did something it hasn’t done since 2000

  US stocks soared on Thursday, breaching record highs, powered by blockbuster earnings from AI darling Nvidia (NVDA).

  The tech-heavy Nasdaq (^IXIC) shot up nearly 3% on the heels of the chipmaker’s results, while the S&P 500 (^GSPC) jumped about 2.2%. The Dow Jones Industrial Average (^DJI) popped almost 1.2%, or more than 400 points.

  Both the S&P 500 and Dow Jones closed at record highs on Thursday. The Nasdaq Composite closed just shy of a record high while the Nasdaq 100 (^NDX) rose more than 3% to an all-time high. The last time the Nasdaq 100 moved more than 3% and hit a record high on the same day was in March of 2000, per Bespoke Investment Group.

  Today could be the first day since 3/22/2000 that the Nasdaq 100 rallies 3%+ and makes a new all-time closing high. It happened 22 times from June 1998-March 2000. March 5th, 1991 was the first time it happened. pic.twitter.com/V7hqUYAycJ

  — Bespoke (@bespokeinvest) February 22, 2024

• Thu, February 22, 2024 at 3:49 PM EST
  

  Reddit files to go public under ticker RDDT

  Reddit has filed for an initial public offering and plans to list on the New York Stock Exchange under ticker RDDT.

  The social media company revealed in an S-1 filing 2023 it had a net loss of $90.8M in 2023, down from a net loss of $158.6M in 2022. An estimated valuation for the company was not listed in the filing.

• Thu, February 22, 2024 at 3:00 PM EST
  

  Mortgage rates continue to climb in February

  Mortgage rates continued to press higher, according to new data released on Thursday.

  Yahoo Finance’s Rebecca Chen reports:

  Mortgage rates climbed further above 7% this week, complicating the housing market with mixed signals on where home affordability will head next.

  The average rate for a 30-year fixed loan reached 7.16% on Thursday and has remained over the 7% threshold every day over the past seven days, according to Mortgage News Daily tracking. The latest average is the highest in two months, matching the highest level since late November.

  A separate index tracking the weekly average on a 30-year loan showed a similar story — the weekly average increased 12 basis points to 6.90% from 6.77% a week prior, according to Freddie Mac’s latest release.

  So far in 2024, housing market activity remains slow but is expected to accelerate when rates drop. However, resilient economic data — strong labor market and consumer spending — will likely delay the rate cut that many were expecting earlier in the year. That would have a dampening effect on the normally busy spring homebuying season.

  “The economy is creating jobs, but this mortgage rate is really hitting affordability limits for many households,” Lawrence Yun, chief economist at the National Association of Realtors (NAR), said Thursday. “Certainly, they cannot get a mortgage outside of their budget. So it’s not good news.”

• Thu, February 22, 2024 at 2:28 PM EST
  

  Trending tickers on Thursday afternoon

  Rivian (RIVN) Automotive led the Yahoo Finance trending tickers page on Thursday as shares fell more than 26%. Rivian said on Wednesday it sees vehicle production for 2024 hitting 57,000 units, well below the 80,000 units expected. Rivian also said it would cut 10% of salaried staff.

  Nvidia (NVDA) stock soared more than 15% after reporting fourth quarter earnings and first quarter guidance that exceeded Wall Street’s expectations. The company anticipates revenue in the current quarter of $24 billion, plus or minus 2%, above analyst expectations for $21.9 billion.

  Fellow AI chipmaker AMD (AMD) rose more than 11% following Nvidia’s earnings.

  Moderna (MRNA) shares rose more than 15% after reporting a surprise beat for its full-year 2023 earnings. The company’s COVID-19 vaccine sales hit $6.8 billion, topping its own previous guidance for $6 billion.

• Thu, February 22, 2024 at 1:30 PM EST
  

  Nvidia brings new life to ‘FOMO’ AI trade, stock market rally

  The AI trade is back in full force after Nvidia’s (NVDA) big earnings beat, defying fears that euphoria over the technology may have reached its peak.

  Shares of SoundHound (SOUN) and Arm (ARM), companies Nvidia recently revealed it invested in, both rose on Thursday. AMD (AMD), another AI chip play, rose nearly 10% while AI-driven stock Palantir popped nearly 3%. SuperMicro Computers (SMCI), which has been on a meteoric 200% rise this year, soared nearly 20% on Thursday alone.

  The reach of Nvidia’s success was seen beyond just the tech space. The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) touched new intraday record highs less than 30 minutes after the opening bell on Thursday. A slew of other companies that aren’t AI focused, including JPMorgan (JPM) and Waste Management (WM), also touched fresh highs during the session.

  All of these moves higher come just a week after a hotter-than-expected inflation report spawned a mini-market sell-off and as Federal Reserve officials continue to indicate interest rate cuts are likely to come later than many hoped. Normally, those two headwinds are large enough to drive the market action. Not on Thursday.

  To Evercore ISI’s Julian Emanuel this resilience shown by the market amid major macro headwinds and high stock valuations has been simply “impressive.”

  “FOMO operates on its own timetable, stocks can get more expensive, and the Momentum ends when it ends, which is often without warning,” Emanuel said. “FOMO, for now, Stays Bid.”

• Thu, February 22, 2024 at 12:43 PM EST
  

  Stocks at record highs amid Nvidia rally

  Stocks are poised for another record day as Nvidia euphoria proliferates through the broader markets.

  As of 12:40 p.m. ET, the tech-heavy Nasdaq (^IXIC) was up over 2.5% on the heels of the chipmaker’s results, while the S&P 500 (^GSPC) jumped nearly 1.8%. Gains for the Dow Jones Industrial Average (^DJI) lagged, with a rise of 0.8%.

  Both the S&P 500 and Dow Jones Industrial Average were set for a record close.

• Thu, February 22, 2024 at 11:45 AM EST
  

  Moderna CEO: 2024 is year of growth, with 2023 transition in rearview

  Moderna (MRNA) shares jumped almost 10% on Thursday after the vaccine maker posted a surprise beat for its full-year 2023 earnings. The company’s COVID-19 vaccine sales topped $6.8 billion, just above its own guidance of $6 billion.

  CEO Stéphane Bancel credits the year’s results with ongoing demand for the company’s COVID vaccine, despite a waning market in the post-pandemic world.

  “Last year was a transition year. We right-sized manufacturing, took a big write-off, mostly non-cash, in the fall, and now I think we’re off to the races. The objective this year … is to increase vaccination rates,” Bancel told Yahoo Finance’s Anjalee Khemlani.

  Read more here.

• Thu, February 22, 2024 at 11:01 AM EST
  

  Rivian stock hits record low on disappointing production forecast, job cuts

  Rivian (RIVN) shares hit record lows on Thursday after the electric adventure vehicle maker reported mixed fourth quarter results and a production and profit forecast that missed Wall Street expectations.

  The EV manufacturer said it plans to make 57,000 vehicles this year, well below the 80,000 units expected.

  The company also announced another round of layoffs, its third one in the last year and a half. The startup said it will cut staff by about 10%.

  Shares sank 27% on Thursday, hitting a new record low.

• Thu, February 22, 2024 at 10:15 AM EST
  

  Nvidia peers surge on chipmaker’s momentum

  Nvidia (NVDA) peers shot up on the coattails of the chipmaker’s latest gains on Thursday.

  Advanced Micro Devices (AMD) stock gained about 6%, while Super Micro (SMCI) surged 15%. British chip designer ARM (ARM) also gained 11%.

  Nvidia shares jumped 12% on Thursday to hit a record high after the AI darling beat analyst expectations on its latest earnings report.

  The Philadelphia Semiconductor Index (SOX) also gained about 4%.

• Thu, February 22, 2024 at 9:31 AM EST
  

  Stocks rally as Nvidia leads tech higher

  Stocks opened higher on Thursday, buoyed by blockbuster earnings from AI darling Nvidia (NVDA).

  The tech-heavy Nasdaq (^IXIC) shot up about 2% on the heels of the chipmaker’s results, while the S&P 500 (^GSPC) jumped about 1.3%. The Dow Jones Industrial Average (^DJI) rose about 0.6%.

  Nvidia shares shot up 12% to hit a fresh record high after posting quarterly results which beat analyst expectations.

  On Wednesday afternoon, the company posted adjusted earnings of $5.16 per share on revenue of $22.1 billion. Analysts were expecting a profit of $4.60 per share on revenue of $20.4 billion.

  Nvidia stock has been on a tear amid enthusiasm over artificial intelligence and numerous quarterly prints surpassing expectations.

  Shares are up more than 40% since the start of 2024, and roughly 225% higher over the past year.

• Thu, February 22, 2024 at 8:07 AM EST
  

  It’s pretty clear where Wall Street stands on Nvidia

  My Wednesday night of Nvidia analysis ended by seeing this comment on X, formerly known as Twitter, from my former boss Jim Cramer on one of his favorite all-time stocks Nvidia. (We would constantly talk about Nvidia in the TheStreet’s office, going back to 2018.)

  “oh and if you bet against Nvidia please don’t forget to send me an invitation to your funeral….,” Cramer posted.

  Jim reminded me this morning via email that he named his dog Nvidia in 2017!

  I think this upbeat vibe is nicely captured in the actions by sell-side analysts on Nvidia this morning.

  There were price target raises across the board as Nvidia’s quarter and guidance pushed the stock closer to the $800 mark. Interesting to see DA Davidson at a $620 price target, which is about 20% below current levels. Conversely, Bernstein’s new $1,000 price target estimates a 30% upside for Nvidia’s stock from current levels.

  Hat tip to @DeItaone on X for this helpful roundup:

  • UBS cuts price target to $800 from $850

  • KeyBanc raises price target to $1,100 from $740

  • HSBC raises price target to $880 from $835

  • JPMorgan raises price target to $850 from $650

  • Stifel raises price target to $910 from $865

  • Deutsche Bank raises price target to $720 from $560

  • DA Davidson raises price target to $620 from $410

  • Cantor Fitzgerald raises price target to $900 from $775

  • Bernstein raises price target to $1,000 from $700

  • Wolfe Research raises price target to $900 from $630

  • Morgan Stanley raises price target to $795 from $750

  • BofA Securities raises price target to $925 from $800

  • Truist Securities raises price target to $911 from $691

  • Goldman Sachs raises price target to $875 from $800

• Thu, February 22, 2024 at 7:32 AM EST
  

  Looking for other stories inside Nvidia

  At first glance, the story following Nvidia’s (NVDA) latest eye-popping earnings day is the financials themselves.

  To see this kind of growth at Nvidia’s scale is crazy:

  • Total sales: +265% vs last year

  • Data Center: +409% vs last year

  • Visualization: +105% vs last year

  The company’s guidance was equally impressive.

  But once the shock and awe wears off, I think you will see the Street dig in on Nvidia and really try to determine how this company is growing in 2025 and 2026. There has been some chatter on the Street this morning that Nvidia may start to see a sharp growth slowdown next year as Big Tech companies such as Microsoft rein in their AI spending after two heavy years of investment.

  To that emerging debate, I offer up this key point from Stifel analyst Ruben Roy.

  Roy didn’t shoot down the notion of Nvidia’s growth miracle cooling next year but contended they won’t fall off a cliff because of the work the company is doing to diversify its revenue base.

  Says Roy:

  “As questions regarding the sustainability of Nvidia’s growth increase, we found management commentary on revenue diversification notable. In addition to continued growth of Networking and Software, Nvidia’s overall Data Center revenue is increasingly diversifying across industries and regions, including a growing contribution from demand related to sovereign AI deployments. This diversification, in our view, is likely to continue as AI-related ROI for end users accelerates.

  “Nvidia continues to believe that the migration from general purpose compute to accelerated compute represents a $1 trillion opportunity, longer term. As the AI Factory concept materializes, management believes that another $1 trillion opportunity could follow.

  Back to marveling at Nvidia’s numbers… for now.

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