Wall Street's Main Indexes Close In The Green To Wrap Up The Week

Market Summary

• The S&P 500 index closed 0.80% higher to end the week at 5,137.09.
• The Dow Jones Industrial Average gained 0.23% to finish at 39,087.38.
• The Nasdaq Composite index rose 1.14% to close at 16,274.94, marking a new all-time high.

Sector Performance

• Technology stocks led the surge, rising 1.78%.
• Energy stocks followed with a gain of 1.17%.
• Utilities stocks slipped 0.72%.

Notable Movers

• NetApp Inc. (NTAP) jumped 18.167% to $105.31.
• Zscaler Inc. (ZS) declined 9.4% to $219.23.

Economic Data

• Inflation: The Personal Consumption Expenditures (PCE) Price Index for January showed a decline to 2.4% year-over-year, in line with expectations.
• Manufacturing PMI: The ISM Manufacturing PMI fell to 47.8 in February, indicating ongoing contraction in the sector.

Fed Outlook

• The CME FedWatch Tool indicates a near 70% probability of a 25 basis point rate cut by the Federal Reserve (Fed) in June.

Top Nasdaq 100 Influencers

Factors Driving the Nasdaq 100

• Performance of component companies
• US and global economic data
• Interest rates
• Inflation

Inflation and Foreign Exchange

• High inflation typically leads to currency appreciation as central banks raise interest rates to combat inflation.
• This attracts foreign capital inflows seeking higher returns.

Gold and Inflation

• Gold tends to appreciate in times of high inflation as investors seek safe-haven assets.
• However, rising interest rates to combat inflation can reduce the demand for Gold.

Nasdaq FAQs

What is the Nasdaq?

• A US-based stock exchange that began as an OTC stock quotation system.
• It lists over 2,500 stocks, including many technology companies.

What is the Nasdaq 100?

• A large-cap index of 100 non-financial companies from the Nasdaq exchange.
• Accounts for over 90% of Nasdaq movement.

How can I trade the Nasdaq 100?

• Contracts for Difference (CFDs)
• Exchange-Traded Funds (ETFs)
• Nasdaq 100 futures contracts
• Options

Additional Insights

• Jim Reid, global head of economics and thematic research at Deutsche Bank, attributed the Nasdaq's all-time high to positive month-end sentiment.
• Atlanta Fed President Raphael Bostic suggested a potential rate reduction in the summer.
• San Francisco Fed President Mary Daly cautioned against cutting rates too quickly.

Sector Performance Table