(CercleFinance.com) – Wall Street was a little more hesitant on the eve of the weekend, but the bias remained generally positive: the three indices which broke new records intraday or at close, lined up a 17th week of increase with a single weekly consolidation at the end of the first week of January.
The S&P500 (+0.03%) achieved the double intraday/closing record at 5,111 and 5,089 respectively, as did the Dow Jones (+0.16%) at 39,282 and 39,131. The Nasdaq-100 was satisfied with the intraday record (18,091) and lost 0.37% to close at 17,937, in the wake of Apple -1%, Lam Research -1.7%, On Semiconductor -2.8 %, AMD -2.9%, Marvell -3.3% and Booking -10%.
The decline was slowed by the technical rebound of Palo +5.3% and the increases of Zscaler +4%, Adobe +3%, PayPal +1.4%… and Nvidia, which shattered a record at $824 (+4.5%), ultimately only retained a symbolic advantage of +0.4%, at $788 (i.e. +13.5% ‘weekly’).
Over the past week, the Dow Jones gained +1.3%, the Nasdaq +1.4% and the ‘S&P’ +1.7%.
No ‘stats’ on the agenda this Friday, February 23, but T-Bonds seemed to benefit from technical buybacks, with a spread that seemed modeled on Bunds and OATs, i.e. -8 basis points towards 4.245%. But the figures published the day before had no impact while their absence did not prevent the T-Bonds from finishing the week well.
According to Christopher Dembik, economist at Pictet AM, ‘Nvidia’s excellent results are certainly much more important for the short-term trajectory of the stock market than any statistics or central bank decisions.’
Note that at $824, the capitalization of the stock crossed the $2,000 billion mark (i.e. more than the GDP of Canada, South Korea or Russia). The title also shattered on Thursday the record for the largest capital gain in history in 24 hours with +$277 billion (this is more than the GDP of Portugal or New Zealand), far ahead of Meta and its +200 billion $ three weeks earlier and Apple’s +$190 billion in December 2022.
Nvidia also beats the historical record for the highest capitalization contribution to the S&P500 in seven weeks with +$800 billion (i.e. the equivalent of the GDP of Switzerland or Turkey) and for the strongest activity on derivatives (a tsunami of purchase of ‘calls’, a profitable strategy, which is rare when everyone is ‘in the same direction’).
And the record for the largest turnover on a stock in one session the day before ($60 billion) was broken this Friday with $64 billion (i.e. a month of transactions for the CAC40, with an average of 22 sessions).
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