Nasdaq, S&P 500 surge to fresh records

NEW YORK (AFP/APP): The Nasdaq and S&P 500 finished at fresh records Friday following another banner day for Nvidia and other chip companies on bullish sentiment about artificial intelligence.

The tech-rich Nasdaq Composite Index, which on Thursday had finished at its first record since 2021, moved higher still, ending at 16,274.94, up 1.1%.

The broad-based S&P 500 jumped 0.8 percent to 5,137.08, also a record, while the Dow Jones Industrial Average added 0.2 percent at 39,087.38.

Dell Technologies became the latest big beneficiary of the AI fever, surging more than 31 percent following an earnings report that highlighted its growing AI business.

Nvidia, whose chips are seen as perhaps the purest bet on AI, jumped four percent. Other chip companies, including Advanced Micro Devices and Micron Technology, also advanced.

CFRA Research’s Sam Stovall also pointed to weaker economic data, including the Institute for Supply Management survey of manufacturers and consumer confidence data as “indicating that there could be more reason for the (Federal Reserve) to cut in May.”

In recent weeks, markets have been absorbing comments from Fed officials signaling the US central bank was in no hurry to cut interest rates.

Among individual companies, Spirit AeroSystems surged 15.5 percent following a Wall Street Journal report that the company could be bought by Boeing, which divested itself of Spirit’s assets in 2005. Boeing declined 1.8%.

New York Community Bancorp slumped 26 percent after replacing its CEO and notifying securities regulators that it would file its annual report late, identifying “material weaknesses” in its internal controls.

The troubled bank also restated its fourth-quarter loss as $2.7 billion, more than 10 times the size it previously reported.

Mattel lost 0.9 percent after disclosing that it would file its annual report later than its supposed to, saying it found “material weakness in its internal control over financial reporting.”