Market Analysis by Antonio Ernesto Di Giacomo, Latam Market Analyst at

24 February 2024: The financial market has witnessed a notable milestone this week, with the S&P 500, once again, reaching historical highs. This benchmark index has surpassed the 5090 points mark, reflecting the strong performance of major companies across various sectors. One of the key drivers behind this ascent has been the outstanding performance of leading technology companies such as Nvidia, a leader in chip manufacturing and a pioneer in artificial intelligence trading.

Closing on February 22, 2024, the S&P 500 recorded a 2.1% increase, further solidifying its position in a bull market that has prevailed since the October 2022 downturn. Since then, the index has experienced an impressive 45% surge, signaling a positive trend for long-term investors.

Despite concerns related to the Federal Reserve’s (FED) monetary policy and possible interest rate decreases, investors have overlooked these worries, focusing on the market’s positive performance. This optimistic sentiment was bolstered by Nvidia’s excellent results reported in its fiscal fourth quarter, fueling confidence in the potential of artificial intelligence and generating a widespread increase in technology stocks.

Nvidia’s stock, in particular, recorded an impressive 16% increase, reaching new historical highs and surpassing $785.00 per share. This surge came after the company announced fourth-quarter earnings that exceeded market expectations, with revenues of $22.103 billion and earnings per share of $5.16. The company’s optimistic projections for the first quarter also contributed to investor enthusiasm.

In addition to Nvidia, other companies also contributed to the S&P 500’s momentum. Moderna, for example, experienced a 13% increase after reporting surprisingly high earnings in the fourth quarter, highlighting its ability to mitigate costs and exceed market expectations. Companies like Broadcom Inc., Meta, and Microsoft also saw notable growth, further solidifying the technology sector’s position in the current market.

In conclusion, this week’s historical close of the S&P 500 reflects investors’ resilience and continued optimism, driven by the strong performance of leading technology companies and other vital sectors. Although some concerns persist regarding monetary policy and other external factors, the market is confidently sailing towards even higher territories.

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