For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.Lyft rises on cost cuts, Q4 profit beat Uber hits record high on $7 bln share buyback plan Robinhood up on surprise Q4 profit, revenue forecast Crypto stocks jump, bitcoin crosses $1 trillion market cap Indexes up: Dow 0.14%, S&P 0.44%, Nasdaq 0.57% Updated at 11:34 a.m.ET/1634 GMT By Johann M Cherian and Ankika Biswas Feb 14 (Reuters) – Wall Street edged higher in volatile trading on Wednesday after a selloff in the prior session on a hot inflation report, while Nvidia topped Alphabet’s market value to become the third-most valuable U.S.company.
Nvidia NVDA.O overtook Alphabet’s GOOGL.Omarket capitalization, days before the poster child of AI boom is due to report its fourth-quarter results.Nvidia’s shares were up 0.7% while the Google-parent lost 0.2%.
“If AI is truly going to be a game changer for the world, Nvidia is at the forefront of all of that,” said Dennis Dick, founder and market structure analyst at Triple D Trading.Rate-sensitive megacap Meta Platforms META.O and other chip stocks like Advanced Micro Devices AMD.O and Qualcomm QCOM.O gained between 1.8% and 2.5%.
The indexes had slumped to over one-week lows on Tuesday and the blue-chip Dow .DJI posted its worst day in 11 months, as core consumer prices in January stayed at nearly double the Fed’s 2% target, forcing investors to reassess their rate cut expectations.Providing some relief were Chicago Fed President Austan Goolsbee’s comments that the path back to 2% inflation target would still be on track even if price increases run a bit hotter-than-expected going ahead, and the central bank should be wary of waiting too long before cutting rates.
“I think the inflation trend is still very friendly to this market and a lot of people who are still under-invested in this market are using the dip to get in,” Dick added.Euphoria around an early start to monetary policy easing had fueled a Wall Street rally since November, paving the way for a bull market for the S&P 500 this year.However, policymakers might have to wait a bit longer for more evidence of easing price pressures in the face of a resilient U.S.economy.Bets for an at least 25-basis-point rate reduction in May stood at 35%, down from 63% earlier in the week, while expectations for June stood at 81%, the CME FedWatch tool showed.
At 11:34 a.m.ET, the Dow Jones Industrial Average .DJI was up 54.02 points, or 0.14%, at 38,326.77, the S&P 500 .SPX was up 21.70 points, or 0.44%, at 4,974.87, and the Nasdaq Composite .IXIC was up 89.70 points, or 0.57%, at 15,745.30.Uber UBER.N gained 11.7% to notch a record high, boosted by a $7 billion share buyback plan, steering a 1% advance in the industrial sector .SPLRCIthat led sectoral gains.
The small-caps Russell 2000 index .RUTalso added 1.2%.Lyft LYFT.O surged 32.9% after the ride-hailing platform’s profit beat estimates and it said it would generate positive free cash flow for the first time in 2024.
Robinhood Markets HOOD.O jumped 9.4% following a surprise fourth-quarter profit.Crypto stocks like Coinbase COIN.O, Marathon Digital MARA.O and Riot RIOT.O surged between 10.8% and 12.4% as bitcoin’s BTC= market value crossed $1 trillion for the first time since Nov.21.Advancing issues outnumbered decliners by a 4.00-to-1 ratio on the NYSE and a 3.01-to-1 ratio on the Nasdaq.
The S&P index recorded 26 new 52-week highs and two new lows, while the Nasdaq recorded 57 new highs and 51 new lows.US CPI https://tmsnrt.rs/3OG5xLn Nvidia market value https://tmsnrt.rs/3SXW0BR (Reporting by Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Arun Koyyur and Maju Samuel) (( [[email protected]](mailto:[email protected]);)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc..
