News | Weekly Market Commentary

Weekly Market Overview

Posted on February 26, 2024

Shared by Sam Lawhon, Larson Director of Investments
The S&P 500 rose 1.7% to a new record close as stronger-than-expected quarterly results from Walmart and NVIDIA boosted investor sentiment.

The S&P 500 index rose 1.7% this week to a new record close as stronger-than-expected quarterly results from retailer Walmart (WMT) and chipmaker NVIDIA (NVDA) boosted investor sentiment.

The market benchmark ended Friday’s session at 5,088.80, its highest closing level on record. The S&P 500 also reached a fresh intraday high on Friday at 5,111.06. The index is now up 5% for the month to date and up 6.7% for the year to date.

The weekly advance was led by the consumer staples and technology sectors amid excitement over the quarterly results from Walmart and NVIDIA. For its fiscal Q4 ended Jan. 31, Walmart reported adjusted earnings and revenue above analysts’ expectations. The company also boosted its dividend and unveiled an agreement to acquire entertainment technology company Vizio Holding (VZIO) for $2.3 billion in cash.

NVIDIA’s shares, meanwhile, rallied on better-than-expected results for the company’s fiscal Q4 ended Jan. 28. Sales more than tripled from the year-earlier quarter amid strong demand for generative artificial intelligence, and the company issued upbeat guidance for its fiscal Q1 revenue.

NVIDIA’s report sent the chipmaker’s stock to a $2 trillion market capitalization for the first time ever and sparked a rally across technology stocks and others touched by artificial intelligence.

Every sector of the S&P 500 rose on a weekly basis, led by a 2.1% gain in consumer staples and a 2.0% rise in technology. Other strong gainers included materials, industrials and financials. The smallest increase was posted by energy, which edged up 0.4%.

In consumer staples, Walmart’s shares rose 3.1% on the week amid its better-than-expected earnings report, dividend boost and Vizio deal. Among other gainers in the sector, shares of Kraft Heinz (KHC) rose 3.6% as the food, beverage and snacks company reiterated its 2024 financial outlook at a conference.

The technology sector’s advance was led by an 8.5% climb in NVIDIA’s shares on the week, followed by an 8.2% increase in the shares of fellow chipmaker Micron Technology (MU).

The energy sector’s small gain came as crude oil futures declined. Shares of APA Corp. (APA) shed 4.9% as the company reported Q4 adjusted earnings per share below analysts’ mean estimate despite higher-than-expected revenue.

Economic data scheduled for next week include January new home sales on Monday, the first revision to Q4 gross domestic product on Wednesday and the January personal consumption expenditures index on Thursday.

Do you own a business?
Check with your advisor to see if the Corporate Transparency Act affects you.

The S&P 500® Index is a capitalization index of 500 stock-designed to measure performance of the broad domestic economy through changes in the aggregate market value of stock representing all major industries.

The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities.

The NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes over 2,500 companies, more than most other stock market indexes. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indexes.

The MSCI World Index, which is part of The Modern Index Strategy, is a broad global equity benchmark that represents large and mid-cap equity performance across 23 developed markets countries. It covers approximately 85% of the free float-adjusted market capitalization in each country and MSCI World benchmark does not offer exposure to emerging markets.

The MSCI Emerging Markets (EM) Index is designed to represent the performance of large- and mid-cap securities in 24 Emerging Markets countries of the Americas, Europe, the Middle East, Africa and Asia. As of December 2017, it had more than 830 constituents and covered approximately 85% of the free float-adjusted market capitalization in each country.

The S&P GSCI Crude Oil index provides investors with a reliable and publicly available benchmark for investment performance in the crude oil market.

Companies in the S&P 500 Sector Indices are classified based on the Global Industry Classification Standard (GICS®).

Share this Post...