S&P 500 Touches Record Highs, Market Dynamics Unraveled – ABM Indus (NYSE:ABM) S&P 500 Touches Record Highs, Market Dynamics Unraveled

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By Ronald Tech

Steadfast in its ascent, the S&P 500 surged beyond the 5,150-point zenith during midday trading in New York, reclaiming its previously set record-high threshold. This surge found its fervor in the assuring words of Fed Chair Jerome Powell concerning potential interest rate cuts.

Facing the Senate Banking Committee, Powell hinted at a scenario where the Fed might soon feel at ease to trim rates, hinting at a burgeoning tendency among policymakers to institute easing measures within the year.

Powell’s affirmations breathed fresh optimism into the markets, with the tech-laden Nasdaq 100 nudging towards 18,290, in proximity to its recent record of 18,333 points, achieved just days earlier.

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The ebullient spirits extended to the Magnificent Seven, monitored through the Roundhill Magnificent Seven ETF (MAGS), rallying by 2%. Standout performances from Meta Platforms (META), surging by 4%, and Nvidia Corp. (NVDA), climbing by 3.5% and crossing the monumental $900 per share milestone, painted a vibrant picture of the market landscape.

In contrast, Treasury yields experienced a slight dip, while the dollar’s vigor waned by 0.4%, gliding towards its lowest closing stance since mid-January.

Across the Atlantic, the European Central Bank (ECB) elected to uphold interest rates at their current positions. However, ECB President Christine Lagarde struck a cautious note during the press rendezvous, stressing that deliberations on rate cuts had not transpired at the meeting. Lagarde underlined the autonomy of Frankfurt’s decision-making process from that of the Fed and underscored the necessity for heightened assurance before contemplating policy modifications.

In the realm of precious metals, gold continued its celestial trajectory, breaching new record altitudes, now surpassing $2,155 per ounce and marking its eighth consecutive session of triumph.

Turning the lens to the cryptocurrency realm, Bitcoin observed a 2.6 percent hike, reaching $67,840 per coin, edging ever closer to its historical pinnacle, now less than 2% away.

Chart of The Day: S&P 500 Breaks All-Time Highs Again, Up 9% Year To Date

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Market Performance on Thursday: Key Indices, ETFs

Major Indices & ETFs Price 1-Day %
Nasdaq 100 18,272.45 1.4%
S&P 500 5,149.52 0.9%
Russell 2000 2,078.83 0.8%
Dow Jones 38,730.95 0.2%

The SPDR S&P 500 ETF Trust (SPY) rose 0.9% to $514.40, while the SPDR Dow Jones Industrial Average (DIA) surged 0.2% to $387.99. The tech-heavy Invesco QQQ Trust (QQQ) also rallied, marking a 1.5% leap to $445.43, according to Benzinga Pro data.

The Communication Services Select Sector SPDR Fund (XLC) emerged as the top performer, climbing by 1.8%, while the Financials Select Sector SPDR Fund (XLF) lagged, declining by 0.4%.

Thursday’s Stock Movers

  • ON Semiconductor Corp. (ON) surged by over 8% following a recent analysis by Bank of America, revealing a substantial surge in overweight positions among active managers.
  • Novo Nordisk A/S (NVO) soared by almost 10% after unveiling promising early data on its experimental obesity drug, showcasing significant weight reduction. The Danish pharmaceutical giant now boasts a market capitalization exceeding that of Tesla Inc. (TSLA).
  • New York Community Bancorp (NYCB) achieved a surge of over 7% following Fitch Ratings’ reaffirmation of its ratings, driven by the company’s announcement of a capital inflow exceeding $1 billion from various entities.
  • Avangrid Inc. (AGR) catapulted by 12.6% after the revelation of a non-binding offer from its parent company, Iberdrola, to privatize the company at $34.25 per share.
  • Victoria’s Secret & Co. (VSCO) plummeted by 30% post the release of its quarterly earnings report.
  • The Kroger Company (KR) saw a 9% rise after reporting a profit surpassing expectations in the last quarter.
  • Other stocks reacting to earnings were ABM Industries Incorporated (ABM), up by nearly 5%; American Eagle Outfitters, Inc. (AEO), up by 3%; Bilibili Inc. (BILI), down by 2%; BJ’s Wholesale Club Holdings, Inc. (BJ), up by 6.7%; Burlington Stores, Inc. (BURL), up by 6%; Ciena Corporation (CIEN), down by 14%; and FuelCell Energy, Inc. (FCEL), down by 7%.
  • Ensembles reporting after hours include BigBear.ai Holdings, Inc. (BBAI), Broadcom Inc. (AVGO), DocuSign, Inc. (DOCU), Costco Wholesale Corporation (COST), Gap, Inc. (GPS), Samsara Inc. (IOT), Smith & Wesson Brands, Inc. (SWBI), and MongoDB, Inc. (MDB).

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Image created using artificial intelligence with Midjourney.