XLV - Nasdaq S&P 500 Set for Mixed Open After Nvidia Euphoria: Analyst Picks Major Market Catalyst This Year If There Are No Rate Cuts | Benzinga
U.S. stocks could see a pause on Friday as traders take a breather following the impressive rally on Thursday, sparked by Nvidia Corp.’s (NVDA) strong quarterly results. Additionally, comments from Federal Reserve Governor Lisa Cook after the market closed reinforced the central bank’s stance of holding off on rate cuts until inflation shows a sustained decline. Cook emphasized the need for greater confidence in inflation converging towards the 2% target before considering rate cuts.
The lack of significant economic data on Friday might lead to indecision among traders, particularly as they absorb Thursday’s gains.
Thursday’s Market Recap:
Nvidia’s earnings ignited a significant upward surge in the markets on Thursday. Major indices opened higher with a gap and maintained steady growth throughout the session. Economic data presented mixed signals, with manufacturing activity exceeding expectations in February while the service sector showed a slowdown.
Other notable data points included a surprise decline in weekly jobless claims and slightly higher-than-expected existing home sales for January.
The Nasdaq Composite closed above the 16,000 mark for the first time since Nov. 19, 2021, while the S&P 500 Index and the Dow Jones Industrial Average reached new record highs.
The market witnessed broad-based strength, except for defensive utility stocks which closed lower. IT stocks led the gains, followed by communication services, consumer discretionary, industrial, healthcare, and financials.
Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, observed that 55 stocks, representing 10% of the S&P 500 companies, reached new all-time highs, including several bellwether stocks. He also noted that the Health Care Select Sector SPDR Fund (NYSE:XLI), Health Care Select Sector SPDR Fund (NYSE:XLV) and VanEck Semiconductor ETF (NASDAQ:SMH) achieved new 52-week highs, along with the Invesco S&P 500 Equal Weight ETF (NYSE: