The stock market closed with gains across the board, spurred by a late afternoon push. The S&P 500 and Nasdaq Composite both rose by 1.6%.
Mega cap stocks led the afternoon surge after a lackluster week. Notable performers included NVIDIA (NVDA, Financial) at $124.92, up 4.0%, Apple (AAPL, Financial) at $241.84, up 1.9%, and Microsoft (MSFT, Financial) at $396.99, up 1.1%. These companies make up nearly 20% of the S&P 500's market capitalization.
The equal-weighted S&P 500 climbed 1.1%, with all 11 sectors closing in positive territory. Top-performing sectors included consumer discretionary (+1.8%), technology (+1.7%), and financials (+2.1%).
Treasury yields fell, reflecting ongoing growth concerns. The 10-year yield decreased by five basis points to 4.23%, while the 2-year yield dropped eight basis points to 4.00%.
The January Personal Income and Spending report indicated disinflation in the core-PCE Price Index, the Fed's preferred inflation measure. However, real personal spending fell by 0.5% month-over-month, likely impacting Q1 GDP forecasts negatively.
The Atlanta Fed GDPNow forecast for Q1 GDP was revised to a 1.5% contraction, down from the previous estimate of 2.3% growth.
Geopolitical tensions also influenced the market. Stocks dipped mid-day after a heated meeting between President Trump and Ukraine's President Zelenskyy, where Trump warned Zelenskyy about "gambling with World War III."
Today's economic data highlights:
Upcoming data on Monday includes the February ISM Manufacturing Index and January Construction Spending, both due at 10:00 ET.
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Google (GOOGL, Financial) has announced internal reorganization plans, impacting its People Operations and cloud organizations. The tech giant is offering a voluntary exit program to U.S.-based employees as part of efforts to streamline operations and focus on long-term priorities. These changes are not indicative of a company-wide layoff but are part of ongoing business adjustments.
Advanced Micro Devices (AMD, Financial) has launched its new graphics architecture, the AMD RDNA 4, with the introduction of the Radeon RX 9070 XT and RX 9070 graphics cards. These products, part of the Radeon RX 9000 Series, promise enhanced gaming experiences with advanced AI and raytracing accelerators.
DoubleVerify (DV, Financial) saw an upgrade from Bank of America, following a significant drop in share price after disappointing quarterly results. Despite conservative guidance, the launch of Meta pre-bid solutions is expected to drive growth, with a potential increase in ad spending on platforms like Facebook and Instagram.
AES Corp. (AES, Financial) reported strong earnings, significantly surpassing expectations, which led to a 12.1% rise in its stock. The company anticipates continued growth in its utilities business and new renewable energy projects, forecasting adjusted earnings above Wall Street consensus for the year.
Citigroup (C, Financial) faced scrutiny after an internal error resulted in an $81 trillion transaction being mistakenly processed, which was later reversed. This incident may attract further regulatory attention as the bank works to resolve operational issues.
Booz Allen Hamilton (BAH, Financial) experienced a decline in stock value following a directive from the Trump administration to review $65 billion in government contracts. This review could impact Booz Allen's revenue, as a significant portion comes from government contracts.
SoundHound AI (SOUN, Financial) shares surged as the company reported Q4 results that beat expectations, with a 101% year-over-year revenue increase. The company raised its full-year revenue outlook, driven by its voice-enabled Agentic AI technology.
Rocket Lab USA (RKLB, Financial) faced a dip in stock price after announcing a delay in the Neutron debut launch to the second half of 2025. Despite the delay, the company highlighted new developments such as a landing platform and a low-cost satellite, Flatellite, aimed at enhancing connectivity and remote sensing capabilities.
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