Rising stock prices lose momentum, and the Dow declines as it approaches

[ad_1]

U.S. stocks rose to a record on Monday as investors braced for a week that Federal Reserve Chairman Jerome Powell’s testimony and the monthly jobs report could test stock market gains. It fell back to put a stop to it.

The S&P 500 (^GSPC) fell about 0.1% after ending Friday with its 16th weekly win in 18 weeks. The Dow Jones Industrial Average (^DJI) fell about 0.3%, and the tech-heavy Nasdaq Composite Index (^IXIC) fell 0.2%.

Stocks continued to rise amid a relentless rally in tech stocks fueled by AI, which helped the Nasdaq Composite Index (^IXIC) finally hit a new all-time high after years of waiting. The soaring price of technology, and in particular the staggering rise in Nvidia’s (NVDA) valuation to $2 trillion, has raised concerns about a construction bubble, but some analysts aren’t too worried.

Also on Monday, Bitcoin (BTC-USD) continued its rally, with the cryptocurrency nearing an all-time high above $66,000 and Japan’s Nikkei 225 stock index (^N225) breaking above the key 40,000 level for the first time. did.

With Federal Reserve Chairman Jerome Powell taking the floor and the February jobs report released, there may be reality behind all the hype and expectations. Both will affect rate cut calculations and reveal whether the U.S. economy is headed for a “soft landing” or stagflation. Powell is scheduled to testify before Congress starting Wednesday, and labor statistics are expected to be released on Friday.

Meanwhile, in a blow to big tech, European antitrust regulators have fined Apple (AAPL) nearly $2 billion over App Store restrictions on Spotify (SPOT) and other music streaming services. . Apple stock fell 3% on the news.

Among the big stocks, Macy’s (M) shares soared more than 14% after bidders Arkhouse and Brigade raised their offer to $6.6 billion, 33% above Friday’s closing price.

Spirit Airlines (SAVE) stock fell more than 12% and JetBlue stock (JBLU) rose 5% after the low-cost carrier announced the termination of a $3.8 billion merger agreement. A federal judge blocked the deal in January.

Meanwhile, shares of Super Microcomputer (SMCI) soared 18% on Monday ahead of the AI server maker’s entry into the S&P 500.

live5 updates

Monday, March 4, 2024, 9:03 PM (GMT+5:30)

Another Wall Street strategy team has a more optimistic outlook on how far stocks will go this year.

Bank of America’s U.S. equities and quantitative strategy team, led by Savita Subramanian, raised its year-end target for the S&P 500 Index (^GSPC) to 5,400 from 5,000 in a note to clients on Sunday. The 5,400 forecast is in line with UBS’s recent call and is the most bullish forecast for the benchmark average this year among strategists tracked by Yahoo Finance.

“Bull markets end on a high note, but we are not there yet,” Subramanian wrote. “Sentiment has improved, but the euphoria area is limited (AI, GLP-1).”

BofA’s move marks the fifth price target hike by strategists tracked by Yahoo Finance in the last month. The outlook has become more optimistic after the stock price rose significantly at the start of the year. The S&P 500 and Nasdaq Composite just completed their best February since 2015, buoyed by two consecutive quarters of profit increases and growing confidence in the trajectory of the U.S. economy.

Subramanian noted that fourth-quarter profits rose 4% from a year earlier and that analysts were not revising their estimates for the current quarter downward at the usual rate. This comes as Bank of America’s economic research team just raised its growth outlook for this year. The combination of improved earnings outlooks and a more bullish outlook for the U.S. economy has been a common factor in recent year-end target hikes for the S&P 500 across Wall Street.
Monday, March 4, 2024, 8:45 PM GMT+5:30

Macy’s stock price soars as private equity firm raises price to $6.6 billion amid takeover battle

Macy’s (M) stock rose as much as 16% on Monday after activist shareholder Arkhouse Management raised its takeover offer for the iconic retailer to $6.6 billion. Macy’s had rejected a prior $5.8 billion offer from the private equity firm and its partner Brigade Capital in late January.

As Yahoo Finance’s Brooke DiPalma reports, Macy’s (M) is trying to make a fresh start, but the battle to go private is heating up and there are doubts the company can plan a comeback with its current plan. There remains some doubt as to whether.

Tony Spring, who took over as CEO just a month ago, admits the business needs to change.

“We’re not going to leave Macy’s in its current state. It would be foolhardy to think that leaving the business in its current state is the secret to future success,” Spring told Yahoo Finance.

Spring said brands will “evolve”, adjust product offerings and “thoughtfully” integrate physical and digital presence, but it will take “the right actions…time and organizational support.” said.

Arkhouse Management’s new bid announced on Sunday shows activist investors are not waiting for results.

Please see here for the detail.
Monday, March 4, 2024, 8:05 PM (GMT+5:30)

Stock price rise pauses, Bitcoin surpasses $65,000

Stocks opened lower on Monday, paring recent gains as markets prepare for this week’s testimony from Federal Reserve Chairman Jerome Powell and the monthly jobs report that could test any gains in stock prices. It stopped.

The S&P 500 (^GSPC) was down about 0.2%, and the Dow Jones Industrial Average (^DJI) was down 0.5%. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, was little changed.

Also on Monday, Bitcoin (BTC-USD) rose to over $65,000, inching closer to its record high.
Monday, March 4, 2024, 7:49 PM GMT+5:30

Spirit stock falls as JetBlue cancels merger agreement

(SAVE) stock fell as much as 16% in premarket Monday after the low-cost carrier canceled a $3.8 billion merger deal with JetBlue (JBLU) that was blocked by a court in January.

“After discussing options with our advisors and JetBlue, we are confident that current regulatory obstacles will allow us to complete this transaction in a timely manner in accordance with the merger agreement,” Spirit CEO Ted Christie said in a company statement. I have come to the conclusion that this is not possible.”

JetBlue’s plan to buy Spirit stalled on January 16 when a federal judge blocked the deal due to antitrust concerns.

After the announcement, JetBlue’s stock price rose more than 5% in premarket. Spirit stock is down about 60% since the beginning of the year.
Monday, March 4, 2024, 6:00 PM GMT+5:30
Surprising statistics about Nvidia

Some of the hottest trending tickers on Yahoo Finance this morning are crypto-related. Not surprising as Bitcoin has topped $65,000 and excitement is building towards a possible April halving event.

But for me, the main story in the market remains the trading frenzy surrounding AI sweetheart Nvidia (NVDA). As this stock progresses, it will also hit the market in 2024 (and he will in 2025, 2026, 2027…).

Some thought-provoking statistics about Nvidia:

Nvidia is currently the third most valuable American company with a market capitalization of $2.5 trillion.

It took just 180 business days for Nvidia’s market cap to go from $1 trillion to $2 trillion.

92% of analysts covering the stock rate it a “buy.”