AI Boom Extends U.S. Market Rally, Treasury Yields Edge Higher

Barry Adams
23 Feb, 2024
New York City

 Stocks opened higher in New York, and benchmark indexes extended weekly gains in a week dominated by the Nvidia-powered market rally. 

Global markets extended weekly gains after Nvidia surpassed the highest expectations set by analysts, and the company's outlook also fueled more optimism about the company's sales in the current quarter and the entire ecosystem supporting the rapid adoption of artificial intelligence. 

Nvidia jumped 4% in Friday's trading and extended this year's gain to 70% and the 52-week gain to 247%. 

The yield on U.S. Treasury notes inched higher after investors reassessed their interest rate outlook following hawkish comments from Fed officials on Thursday. 

For the week, the S&P 500 and the Nasdaq are up 2%. 

 

U.S. Indexes and Yields

The S&P 500 index increased 1.7% to 5,065.91, and the Nasdaq Composite advanced 2.5% to 15,963.40. 

The yield on 2-year Treasury notes increased to 4.72%, 10-year Treasury notes inched up to 4.32%, and 30-year Treasury bonds edged up to 4.45%.

WTI crude oil decreased $1.57 to $77.04 a barrel, and natural gas prices decreased 12 cents to $1.60 a thermal unit and rebounded from a low last seen in September 2020.

Gold increased by $2.42 to $2,026.42 an ounce, tracking lower yields on U.S. Treasury notes. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.86.

 

U.S. Stock Movers

Intuit declined 1.2% to $650.0 after the accounting software developer reported mixed quarterly results. 

Live Nation Entertainment soared 5.4% to $98.50 after the entertainment company reported strong revenue in the fourth quarter after business picked up around the world. 

Booking Holdings decreased 7.3% to $3,625.0 after the online travel company reported stronger-than-expected quarterly results, and the company said it plans to launch a quarterly cash dividend of $8.75 per share. 

Carvana soared 24.5% to $65.50 after the user-car marketplace operator reported its first-ever annual profit. 

In the fourth quarter, Carvana sold 76,090 vehicles and generated sales of $2.4 billion. 

In 2023, Carvana sold 312,847 vehicles for a total revenue of $10.7 billion and swung to a net income of $150 million, partly due to gains on debt reduction. 

Warner Bros. Discovery dropped 8.6% to $8.75 after the media conglomerate reported weaker-than-expected fourth-quarter results. 

Block soared 17% to $79.60 after the company reported better-than-expected revenue of $5.7 billion in the fourth quarter and an unexpected profit.

In the quarter, the company swung to a net income of $178 million from a loss of $114 million. 

Full-year revenue rose to $7.5 billion from $6 billion, net income soared to $10 million from a loss of $541 million, and diluted earnings per share rose to 2 cents from a loss of 93 cents a year ago.