Stock Market Today: Nasdaq clinches record close as tech reigns supreme
Nasdaq rallied to a record close Friday, ending the week with a win as a Nvidia-led surge fueled bullish bets on stocks offsetting jitters about higher longer interest rates ahead of the long holiday weekend.
At 16:00 ET (20.00 GMT), NASDAQ Composite gained 1.1% to a closing record of 16,920.79, the Dow Jones Industrial Average rose 4 points, or 0.01%, S&P 500 rose 0.
Tech leads charge as Nvidia continues soak up the glory
Tech led the market higher as investors bought the dip in big tech stocks a day earlier and continued to add bullish bets on chipmaker NVIDIA Corporation (NASDAQ:NVDA) following the latter’s bumper first-quarter earnings report.
“We remain all in on the AI Age and note Nvidia’s revenues tripled Y/Y while net profits rose 7 fold – 7 fold in one year,” Jay Pelosky, TPW Advisory principal and founder said Friday.
Rate jitters continue as Goldman pushes back rate cut bet to September
Analysts at Goldman Sachs have pushed back their forecast for the first Fed rate cut to September from July following a slew of Fed speak that flagged concerns about that the path of inflation toward the 2% target will likely take longer than expected.
Concerns about inflation were eased somewhat following a fall in the University of Michigan survey’s 12-month inflation expectation to 3.3% from 3.5% previously.
The widely-watched CME Fedwatch tool indicated a roughly 45% chance that the Fed brings rates down from a more than two-decade high level of 5.25% to 5.5% in September.
Elsewhere on the economic front, durable goods orders grew 0.7% in April, a slip from 0.8% growth the prior month.
Workday disappoints, Deck shines on earnings stage
Workday (NASDAQ:WDAY) slumped 15% after the human resources software provider cut its annual subscription revenue forecast.
The weaker guidance continues to “indicate deceleration in the business,” Deutsche Bank said in a note Friday, adding that the company’s cut top its FY25 subscription was attributed to lower customer headcount growth and elevated deal scrutiny compared with prior quarters.
Intuit (NASDAQ:INTU), meanwhile, shares fell 8% on soft guidance for the current quarter and worries about demand after the company reported a loss of free users at its all-important TurboTax tax-preparation service.
Deckers Outdoor (NYSE:DECK) stock rose 14% after the athletic shoes retailer reported strong quarterly sales growth, boosted by demand for its HOKA and UGG brands.
Coinbase jumps after spot ether ETF listing approval; Lucid cuts jobs
Coinbase Global Inc (NASDAQ:COIN) rose more than 8% as the U.S. Securities and Exchange Commission approved applications from several ether exchanged-traded funds, or ETFs, to list funds that buy and hold ether on U.S. exchanges.
The SEC approved applications for eight ETFs including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy and BlackRock (NYSE:BLK) – to list on the Nasdaq, NYSE Arca, and Cboe BZX exchanges.
Lucid Group Inc (NASDAQ:LCID), meanwhile, rose 2% after the electric vehicle maker said it would cut 6% of its workforce as part of a restructuring effort to save costs amid a difficult backdrop for EV demand.