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U.S. stock markets closed higher on Friday reversing some of the losses of the previous day. Market participants remained enthused about technology bigwigs as artificial intelligence (AI) boom continues. All three major stock indexes ended in positive territory. Wall Street was closed on Monday on account of Memorial Day.
How Did The Benchmarks Perform?
The tech-heavy Nasdaq Composite finished at 16,920.79, climbing 1.1% or 184.76 points due to strong performance by technology behemoths. This marked the all-time closing high of the index. Notably, on May 23, in intraday day trading, the tech-laden index recorded an all-time high of 16,996.39.
The Dow Jones Industrial Average (DJI) rose 4.33 points to close at 39.069.59. 19 components of the 30-stock index ended in positive territory, while 11 finished in negative zone. The S&P 500 advanced 0.7% % to finish at 5,304.72. Notably, on May 23, in intraday trading, the benchmark posted an all-time high of 5,341.88.
Nine out of 11 broad sectors of the broad-market index ended in positive territory, one in negative zone and one remained unchanged. The Communication Services Select Sector SPDR (XLC), the Utilities Select Sector SPDR (XLU) and the Consumer Discretionary Select Sector SPDR (XLY) gained 1.3%, 1%, and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 6.6% to 11.93. A total of 10.36 billion shares were traded on Friday, lower than the last 20-session average of 12.22billion. Advancers outnumbered decliners on the NYSE by a 2.91-to-1 ratio. On Nasdaq, a 1.85-to-1 ratio favored advancing issues.
AI Frenzy Continues
On May 22, NVIDIA Corp. (NVDA - Free Report) reported blockbuster first-quarter fiscal 2025 results smashing all expectations. Revenues of $26.04 billion, soared 262% year over year, marking the third straight quarter of growth in excess of 200%. The metric also exceeds the consensus estimate of $24.33 billion. Adjusted earnings per share were $6.12, ahead of the Zacks Consensus Estimate of $5.49.
Moreover, NVIDIA has given an impressive guidance even after three consecutive quarters of astonishing performances. Management expects sales of $28 billion in the fiscal second quarter, higher than the current consensus estimate of $26.6 billion. NVIDIA ensures artificial intelligence (AI) frenzy is yet to unfold. Consequently, several companies that are closely associated with NVIDIA, gained on Friday.
The Department of Commerce reported that durable goods orders increased 0.7% in April, in contrast to the consensus estimate of a decline of 1.2%. The metric for March was revised downward to an increase of 0.85 from 2.6% reported earlier. April marked the third consecutive month of increase in durable orders.
Excluding transportation, durable orders increased 0.4% in April. Excluding defense, new orders were virtually unchanged in April. Shipment of manufactured durable goods increased 1.2% in April, marking three consecutive months of rise.
The University of Michigan reported that the final reading of consumer sentiment in May came in at 69.1%, beating the consensus estimate of 67.6% and May’s preliminary reading of 67.4%. However, the final reading of May was well below the April’s final reading of 77.2%. May’s reading was the lowest since November 2023.
The sub-index for current economic conditions in May came in at 69.6% compared with 79% in April. Similarly, the sub-index for consumer expectations in May came in at 68.8%, compared with 76% in April.
Weekly Roundup
Last week was a mixed one for Wall Street. The S&P 500 inched up a mere 0.03%. The Nasdaq Composite gained 1.41%. Meanwhile, the Dow slid 2.3%, marking its first negative week in five. Investors remained concerned regarding the time of the first cut of the benchmark interest rate by the Fed. However, astonishing earnings results of NVIDIA bolstered investors sentiment on continuing AI boom.
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Stock Market News for May 28, 2024
U.S. stock markets closed higher on Friday reversing some of the losses of the previous day. Market participants remained enthused about technology bigwigs as artificial intelligence (AI) boom continues. All three major stock indexes ended in positive territory. Wall Street was closed on Monday on account of Memorial Day.
How Did The Benchmarks Perform?
The tech-heavy Nasdaq Composite finished at 16,920.79, climbing 1.1% or 184.76 points due to strong performance by technology behemoths. This marked the all-time closing high of the index. Notably, on May 23, in intraday day trading, the tech-laden index recorded an all-time high of 16,996.39.
The Dow Jones Industrial Average (DJI) rose 4.33 points to close at 39.069.59. 19 components of the 30-stock index ended in positive territory, while 11 finished in negative zone. The S&P 500 advanced 0.7% % to finish at 5,304.72. Notably, on May 23, in intraday trading, the benchmark posted an all-time high of 5,341.88.
Nine out of 11 broad sectors of the broad-market index ended in positive territory, one in negative zone and one remained unchanged. The Communication Services Select Sector SPDR (XLC), the Utilities Select Sector SPDR (XLU) and the Consumer Discretionary Select Sector SPDR (XLY) gained 1.3%, 1%, and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 6.6% to 11.93. A total of 10.36 billion shares were traded on Friday, lower than the last 20-session average of 12.22billion. Advancers outnumbered decliners on the NYSE by a 2.91-to-1 ratio. On Nasdaq, a 1.85-to-1 ratio favored advancing issues.
AI Frenzy Continues
On May 22, NVIDIA Corp. (NVDA - Free Report) reported blockbuster first-quarter fiscal 2025 results smashing all expectations. Revenues of $26.04 billion, soared 262% year over year, marking the third straight quarter of growth in excess of 200%. The metric also exceeds the consensus estimate of $24.33 billion. Adjusted earnings per share were $6.12, ahead of the Zacks Consensus Estimate of $5.49.
Moreover, NVIDIA has given an impressive guidance even after three consecutive quarters of astonishing performances. Management expects sales of $28 billion in the fiscal second quarter, higher than the current consensus estimate of $26.6 billion. NVIDIA ensures artificial intelligence (AI) frenzy is yet to unfold. Consequently, several companies that are closely associated with NVIDIA, gained on Friday.
NVIDIA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Economic Data
The Department of Commerce reported that durable goods orders increased 0.7% in April, in contrast to the consensus estimate of a decline of 1.2%. The metric for March was revised downward to an increase of 0.85 from 2.6% reported earlier. April marked the third consecutive month of increase in durable orders.
Excluding transportation, durable orders increased 0.4% in April. Excluding defense, new orders were virtually unchanged in April. Shipment of manufactured durable goods increased 1.2% in April, marking three consecutive months of rise.
The University of Michigan reported that the final reading of consumer sentiment in May came in at 69.1%, beating the consensus estimate of 67.6% and May’s preliminary reading of 67.4%. However, the final reading of May was well below the April’s final reading of 77.2%. May’s reading was the lowest since November 2023.
The sub-index for current economic conditions in May came in at 69.6% compared with 79% in April. Similarly, the sub-index for consumer expectations in May came in at 68.8%, compared with 76% in April.
Weekly Roundup
Last week was a mixed one for Wall Street. The S&P 500 inched up a mere 0.03%. The Nasdaq Composite gained 1.41%. Meanwhile, the Dow slid 2.3%, marking its first negative week in five. Investors remained concerned regarding the time of the first cut of the benchmark interest rate by the Fed. However, astonishing earnings results of NVIDIA bolstered investors sentiment on continuing AI boom.