Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Wall St eyes muted open after rally on AI boost, inflation relief

Published 2024-03-01, 06:26 a/m
Updated 2024-03-01, 09:09 a/m
© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 29, 2024.  REUTERS/Brendan McDermid/File Photo

By Amruta Khandekar and Johann M Cherian

(Reuters) -Wall Street was set for a muted open on Friday after a rally in the previous session driven by an inflation reading that strengthened bets of interest rate cuts by June this year and a persistent artificial-intelligence mania.

The tech-heavy Nasdaq closed at a record high on Thursday, spurred by gains in AI-linked stocks such as heavyweight chip designer Nvidia and its rival Advanced Micro Devices (NASDAQ:AMD), which hit an all-time peak.

Shares of Nvidia, the key driver of the AI-led rally on Wall Street this year, were up 1.2% in premarket trade, while those of Advanced Micro Devices climbed 2.8% after a 9% surge in the previous session.

The Wall Street rally found further support as the personal consumption expenditures (PCE) report came in-line with expectations on Thursday and showed annual inflation growth was the smallest in three years.

At 8:28 a.m. ET, Dow e-minis were down 24 points, or 0.06%, S&P 500 e-minis were up 0.5 points, or 0.01%, and Nasdaq 100 e-minis were up 17 points, or 0.09%.

"Now that we've gotten through the PCE (report), investors are willing to sit on the sidelines a little bit today," said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest.

Nolte said investors are now waiting for remarks from Federal Reseve Chair Jerome Powell and key employment data due next week for more clues on the monetary policy path.

They will also keep a close eye on data on manufacturing activity and consumer sentiment as well as remarks from Fed officials including Fed Bank of San Francisco President Mary Daly later in the day.

Adding to the risk-off mood on Friday, New York Community Bancorp slumped 21.1% after the regional lender said it had found "material weaknesses" in internal controls related to its loan review and revised its fourth-quarter loss 10 times above the previously stated numbers.

Shares of other regional banks Zions Bancorp and Keycorp fell nearly 1% each.

All three indexes clocked their fourth straight monthly gains on Thursday, while the S&P 500 notched a fresh closing high as euphoria around AI and a strong fourth-quarter earnings season propelled stocks to new heights in February.

Among other stocks, cybersecurity firm Zscaler (NASDAQ:ZS) shed 6.2% as the company reported higher operating expenses in the second quarter.

Dell Technologies jumped 26.1% after the personal computer maker forecast annual revenue and profit above Wall Street estimates, betting on demand for its AI servers.

Autodesk (NASDAQ:ADSK) gained 7.8% as the company's annual revenue forecast exceeded expectations on resilient demand for its design software products.

Everbridge (NASDAQ:EVBG) surged 24.9% after private equity firm Thoma Bravo increased its offer price for the software firm, valuing it at about $1.8 billion.

© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 29, 2024.  REUTERS/Brendan McDermid/File Photo

Apple (NASDAQ:AAPL) slipped 0.6% after brokerage Goldman Sachs (NYSE:GS) removed the iPhone maker's stock from its conviction list.

Eli Lilly (NYSE:LLY) rose 1.8% after BofA Global Research hiked its price target on the drugmaker to a Wall Street-high of $1,000.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.