Megacap tech and the AI trade power US stocks to fresh records |
The Magnificent 7 and most stocks in the AI ecosystem (with the exception of Nvidia) did the lion’s work in propelling the S&P 500 and Nasdaq 100 to another day of record closing highs. The benchmark US stock index rose 0.5%, the tech-heavy gauge was up 0.8%, and the Russell 2000 advanced 0.3% on Monday. Communications services, tech, and consumer discretionary (the sectors home to the Magnificent 7) were the top-performing S&P 500 sector ETFs, while defensive sectors like consumer staples and health care were at the bottom of the leaderboard. Gains on the day were led by Seagate Technology, which jumped 7.8% after Bank of America boosted its price target on the stock to $215 from $170. Western Digital shares were also up 4.8%. Corteva and J.M. Smucker were among the biggest decliners, falling 5.7% and 5.1% respectively. Elsewhere… |
- Alphabet popped 4.5% to become the fourth company to surpass a $3 trillion market cap, joining Nvidia, Microsoft, and Apple.
- Tesla jumped 3.6% after CEO Elon Musk disclosed a purchase of 2.57 million shares, worth over $1 billion, according to a new SEC filing.
- CoreWeave climbed 7.6% after striking an agreement with Nvidia, which will purchase all of CoreWeave’s unused cloud computing capacity through April 2032.
- Intel rose 2.9% after the chip giant trimmed its full-year operating expense forecast to $16.8 billion from $17 billion.
- IonQ shares gained 6.3% after a wave of analyst price target hikes followed its analyst day event at the New York Stock Exchange on Friday.
- Chinese EV maker Nio leapt 4.2% after announcing that deliveries of its ES8 SUV — priced to compete with Tesla’s Model Y — will begin this weekend.
- Joby Aviation and Archer Aviation rose 0.8% and 4.5%, respectively, after Transportation Secretary Sean Duffy announced a new FAA pilot program to speed up “advanced air mobility” development.
- Novo Nordisk edged up 1.4% after European regulators approved its diabetes pill for cardiovascular benefits as well.
- Snap and Meta shook off early declines to close higher after President Trump hinted on Truth Social that a TikTok deal had been reached, with Treasury Secretary Scott Bessent later confirming the framework of an agreement had been achieved.
- Alaska Air fell 6.7% after warning that Q3 profits will likely come in at the low end of its prior outlook.
- Hims & Hers slipped 2.8% after FDA Commissioner Marty Makary called its February Super Bowl ad the “most overt” example of brazen online pharmacy marketing tactics.
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— Luke Kawa, Markets Editor & Nia Warfield, Markets Writer |
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Tesla stock turns positive for 2025 |
Tesla shares surged Monday after CEO Elon Musk disclosed buying more than $1 billion worth. Read more. |
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The ChatGPT maker plans to burn though $115 billion by 2029. No company in history has ever lit that much money on fire intentionally, let alone tried funding such a splurge through private markets alone. Read more. |
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Alphabet joins the $3 trillion valuation club. Google became the fourth company to surpass a $3 trillion market cap on Monday. Read more. | |
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- Novo Nordisk’s GLP-1 pill gets EU approval for cardiovascular benefits
Expanding the conditions Novo’s drugs can be prescribed for could help the Danish pharmaceutical giant spark growth. - Mapped: Where Google’s Waymo is, will be, and might go
Waymo is operating more than 2,000 autonomous vehicles and testing in many markets. - Apple is packing a growing number of self-built custom chips into its gadgets
Fifteen years ago, Apple started on a journey to build its own custom chips. Today, more and more core functions are running on Apple silicon. - Google faces its first big lawsuit for AI summaries, from one of many media companies it’s eclipsing
With most of America’s major news sites seeing large drops in readership, even the tech giant itself admits the web is in “rapid decline. - International investors want to own US assets — and have nothing to do with the US dollar
Looking at ETF flows, Deutsche Bank’s George Saravelos found that 80% of recent foreign inflows into US stocks and 50% of inflows into US bonds have been on a hedged basis. - Hyperscale Data launches bitcoin treasury, sending stock soaring
The stock is still down over 90% year to date. - Here’s how people are are actually using ChatGPT
The new report released in collaboration with the National Bureau of Economic Research, offers one of the largest surveys of real-world AI chatbot use
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