Written by: Gianna Zheng (2/23/2024)

The performance of the S&P 500 this week was at an all-time high, rising 3%. This increase was caused primarily by the technology sector, with Nvidia Corporation (NVDA) standing out as a key player. Nvidia’s release of its revenue reports for the last quarter of 2023 resulted in a 16% rise in its shares and served as the main catalyst. These figures exceeded many analysts’ predictions and triggered a stock rally while securing Nvidia’s spot as the top-performing stock within the S&P 500. This momentum created a ripple effect within similar companies. For example, two chip-making companies, Advanced Micro Devices, and Applied Materials rose 11% and 5% respectively.  

Other major U.S. stock indices showed mixed results. For instance, the Dow Jones Industrial Average experienced similar upticks ending with a modest 0.2% rise. Interestingly, the Nasdaq Composite, an index weighted heavily in technology ended the week down 0.3%. Despite this week’s Wall Street stock rally, the loom of a recession is still in the air with the Federal Reserve keeping a close eye on inflation waiting for the right time to start cutting interest rates.  

Internationally, Japan’s main stock index, the Nikkei 225, also experienced a bullish trend, reaching its record-breaking high. This milestone is particularly significant as it marks the Japanese stock market finally returning to levels before Japan’s recession in 1989. The rise of the Nikkei 225 drew great optimism among both Japanese investors and residents given that it reflects the long-awaited recovery of Japan’s economy and a resurgence in global market confidence.  

Sources: 

https://www.reuters.com/markets/asia/nikkei-parties-like-its-1989-scales-record-high-2024-02-22

https://www.cnbc.com/2024/02/22/stock-market-today-live-updates.html

https://www.nytimes.com/2024/02/22/business/stock-market-today.html?searchResultPosition=1

https://finance.yahoo.com/news/stock-market-today-sp-500-dow-hit-fresh-records-as-wall-street-ends-nvidia-fueled-rally-week-123711842.html Edit