Nasdaq ends February with 4th monthly gain
The Nasdaq Composite ended the month of February on a positive note, setting a new closing record for the first time since November 2021.
As tech companies and chips surged into the close, the tech-heavy Nasdaq increased by 0.90% to conclude at an all-time high of 16,091.92. Additionally, the S&P 500 surged to a record close, finishing at 5,096.27 after advancing 0.52%. The Dow Jones Industrial Average reached 38,996.39 index points, up 0.12% on a tick.
Despite a run of losses that have raised concerns about the sustainability of the AI-driven surge, Thursday’s session ends Wall Street’s trading in February and marks the fourth consecutive positive month for the market. With a 6.12% increase, the Nasdaq was the best in class. The Dow gained 2.22%, marking the first four-month positive run since May 2021, while the S&P 500 increased by 5.17%.
A wave of large tech stocks and the wider markets have seen a surge in value due to the excitement surrounding artificial intelligence, which has propelled the Nasdaq to new heights through 2023 and into this year. Alphabet is a member of the “Magnificent 7”.Amazon, Meta, and Apple also recovered from a difficult 2022 marked by increasing interest rates and recession fears, with Microsoft, Nvidia, and Tesla leading the way.
The VanEck Semiconductor ETF closed 2.2% higher on Thursday, and Advanced Micro Device spiked more than 9%, making chip names one of the rally’s highlights.
Investors’ appetite for risk remained high despite the Federal Reserve’s preferred inflation gauge remaining persistently over the central bank’s target in January, according to data released on Thursday, albeit it did not surpass Wall Street projections. Additionally, there were indications that consumer spending is still high.
The Federal Reserve’s favored inflation indicator, the core personal consumption expenditures price index, rose 2.8% from a year earlier and by 0.4% last month. That is in line with Dow Jones projections. In comparison to projections of 0.3% and 2.4%, the headline PCE, which includes the food and energy categories, climbed by 0.3% per month and 2.4% over the year.
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