Market Overview
The stock market experienced a notable turnaround, initially dropping before ultimately closing higher. This shift was largely influenced by NVIDIA (NVDA, Financial), which saw its stock rebound after an initial decline of 3.9%. This was in response to the unveiling of the Blackwell AI platform at its GTC Conference. NVIDIA's recovery played a key role in steering the broader market towards gains, culminating in the S&P 500 reaching a new record closing high.
Sector Performance
- The energy sector led the gains with a 1.1% increase, buoyed by a rise in WTI crude futures to $82.69.
- Utilities, sensitive to interest rates, followed closely with a 0.9% gain.
- Real estate remained unchanged, while communication services slightly declined by 0.2%.
- Overall, nine out of the eleven S&P 500 sectors ended the day higher.
Interest Rates and Bonds
- The 2-year note yield fell by four basis points to 4.69%, and the 10-year note yield also dropped by four basis points to 4.30%.
- These movements occurred despite positive housing starts and building permits reports for February and significant policy changes by the Bank of Japan (BOJ).
- The BOJ's exit from its negative interest rate policy and adjustments to its yield curve control and asset purchase strategies were notable events.
- A $20-year bond reopening was well-received, contributing to the positive performance in the Treasury market.
Foreign Exchange and Commodities
- The yen weakened against the dollar, with the USD/JPY pair rising by 1.2% to 150.91, following the BOJ's policy adjustments.
- This contributed to a 0.4% increase in the U.S. Dollar Index to 103.82.
- In commodities, crude oil and natural gas saw increases, while gold, silver, and copper experienced declines.
Economic Data and Expectations
Recent economic data highlighted a 10.7% month-over-month increase in housing starts and a 1.9% rise in building permits for February. These figures suggest a rebound from January's weather-affected slowdown, supporting a stable economic outlook. Looking ahead, the focus shifts to the upcoming FOMC decision, with market participants keenly awaiting the Fed's rate projections and Fed Chair Powell's commentary.
Today's News
U.S. stocks closed higher on Tuesday, with the technology sector leading the gains after a mid-day turnaround. Nvidia (NVDA, Financial) saw its stock recover from early losses to close in the green, buoyed by CEO Jensen Huang's comments on the company's prospects in the data center market. Huang's optimistic outlook on gaining a larger share of the data center market, coupled with the unveiling of new chips at Nvidia's annual GTC conference, helped reverse the stock's initial dip.
Altria Group (MO, Financial) announced accelerated share repurchase transactions worth $2.4 billion with Morgan Stanley and Goldman Sachs, aiming to repurchase a significant portion of its stock. This move is part of Altria's expanded $3.4 billion share repurchase program, expected to be completed by the end of 2024.
Williams Companies (WMB, Financial) disclosed that it considered acquiring Tellurian (TELL, Financial) but ultimately deemed the investment too risky. Despite the potential speed to market of Tellurian's Driftwood LNG project, concerns over commercial contracts led Williams to pass on the opportunity.
Reddit (RDDT, Financial) is set to go public, with its IPO reportedly oversubscribed by four to five times. The social media platform faces a patent infringement claim from Nokia (NOK, Financial) but remains optimistic about its market debut. The strong demand for Reddit's shares underscores investor confidence in the company's growth prospects.
Blackstone Mortgage Trust (BXMT, Financial) experienced a decline in its stock price following negative comments from short seller Carson Block. Block's bearish outlook on the commercial real estate sector, particularly multifamily properties, contributed to the stock's downturn.
The Federal Reserve's upcoming policy decision is highly anticipated, with expectations of maintaining interest rates steady. This decision comes amid inflation concerns and will include updated economic projections, potentially impacting market sentiment.
Saudi Arabia plans to establish a $40 billion fund to invest in artificial intelligence, aiming to become the world's largest investor in the technology. This move highlights the growing importance of AI in global industries.
Texas announced its decision to divest $8.5 billion from BlackRock (BLK, Financial) over the asset manager's fossil fuel policies. This action reflects ongoing tensions between investment strategies and energy sector interests.
Planet Fitness (PLNT, Financial) faced backlash and a stock price decline after revoking a member's membership over a dispute involving a transgender individual. The incident has sparked calls for a boycott and highlighted the challenges of maintaining inclusive policies.
Aquestive Therapeutics (AQST, Financial) and Atossa Therapeutics (ATOS, Financial) shared updates on their respective stock offerings and clinical developments, indicating ongoing efforts to advance their pipelines and secure funding.
Taysha Gene Therapies (TSHA, Financial) reported its fiscal year earnings, beating expectations and providing insights into its financial health and operational progress.
Borse Dubai initiated a secondary offering of Nasdaq (NDAQ, Financial) shares, aiming to enhance its capital structure and liquidity. This move could impact Nasdaq's stock dynamics in the short term.
Black Stone Minerals (BSM, Financial) filed a prospectus for the sale of its common units, signaling potential changes in its capital structure and investment strategy.
Super Micro Computer (SMCI, Financial) announced an equity offering and clarified its production goals amid supply chain challenges, reflecting the company's growth ambitions and operational hurdles.
Chevron (CVX, Financial) expressed surprise at Exxon Mobil's (XOM, Financial) decision to seek arbitration over disputed drilling rights in Guyana, highlighting the complexities of energy sector partnerships and agreements.
Boeing (BA, Financial) is considering the sale of two defense and security businesses to strengthen its balance sheet, amidst ongoing safety and operational challenges.
Mitek Systems (MITK, Financial) reported its quarterly earnings, missing expectations and providing a cautious outlook for the coming year, reflecting the competitive and operational challenges in the tech sector.
Micron Technology (MU, Financial) is poised for a strong year, with analysts predicting a significant increase in DRAM pricing, which could bolster the company's financial performance and market position.
Crinetics Pharmaceuticals (CRNX, Financial) filed a prospectus for the resale of shares, indicating ongoing efforts to raise capital and advance its clinical programs.
TeraWulf (WULF, Financial) shared its fiscal year earnings, highlighting its operational progress and strategic initiatives in the cryptocurrency mining sector.
American Tower (AMT, Financial) and Amcor (AMCR, Financial) provided updates on their operational and leadership changes, reflecting ongoing adjustments to market conditions and strategic priorities.
Subway's decision to switch back to Pepsi (PEP, Financial) products marks a significant shift in its beverage offerings, underscoring the competitive dynamics in the restaurant industry.
Unilever PLC (UL, Financial) announced plans to spin off its ice cream brands into a standalone business, aiming to focus on its core operations and improve financial performance.
CTO Realty Growth (CTO, Financial) completed the sale of a significant property, contributing to its strategic realignment and capital allocation efforts.
PDD-owned Temu (PDD, Financial) is reducing its reliance on the U.S. market amid regulatory scrutiny, signaling a strategic pivot towards diversification and global expansion.
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