Market News 02 MAR
Stock Market Shows Strong Growth: Trends and Key Events
Markets closed in positive territory, showing strong growth across all major indices. The S&P 500 and Nasdaq Composite gained 1.6% following a late surge, which was particularly noticeable after a sluggish start to the week.
The biggest contributors to the growth were mega-cap stocks. Notably, NVIDIA (NVDA) rose by 4.0% to $124.92, Apple (AAPL) gained 1.9% to reach $241.84, and Microsoft (MSFT) ended the day at $396.99 (+1.1%). These companies account for nearly 20% of the S&P 500’s market capitalization, making them key drivers of index movement.
Additionally, all 11 sectors of the S&P 500 closed in positive territory. The best-performing sectors included:
Financials (+2.1%)
Technology (+1.7%)
Consumer Discretionary (+1.8%)
Bond Yields and Macroeconomic Conditions
Amid market growth, Treasury yields declined, reflecting increased investor caution. The 10-year Treasury yield fell by five basis points to 4.23%, while the 2-year yield dropped by eight basis points to 4.00%.
Investors paid close attention to the January personal income and spending report. Key highlights:
The Core PCE Price Index indicated disinflation, which is positive for the Federal Reserve’s policy outlook.
Personal spending fell by 0.5%, which could impact GDP forecasts.
The Atlanta Fed revised its Q1 GDP growth forecast to -1.5%, down from the previous estimate of +2.3%.
Geopolitical and Economic Developments
Midday, markets experienced a temporary decline following a meeting between President Trump and Ukrainian President Zelensky. Trump warned Zelensky about the risks of escalating global conflict, causing brief market unease.
Technology Sector:
Google (GOOGL) announced an internal reorganization, including changes in HR and cloud divisions. The company is offering a voluntary exit program for U.S. employees, focusing on long-term business efficiency.
AMD (AMD) introduced its RDNA 4 graphics architecture with new Radeon RX 9070 XT and RX 9070 graphics cards. The new models promise enhanced gaming performance and AI-accelerated features.
Financial Sector:
Citigroup (C) faced operational issues after a transaction error worth $81 trillion, which may attract increased regulatory scrutiny.
DoubleVerify (DV) received an upgrade from Bank of America following a decline in its stock price. The launch of Meta pre-bid solutions is expected to drive advertising spend growth.
Energy and Industrial Sectors:
AES Corp. (AES) posted strong quarterly earnings, leading to a 12.1% stock surge, with optimistic guidance for future profits.
Booz Allen Hamilton (BAH) saw its stock drop after the Trump administration’s decision to review $65 billion worth of government contracts, which could negatively impact the company’s revenue.
Current market trends indicate positive sentiment, but caution remains regarding macroeconomic data. Investors are shifting focus to the upcoming ISM index report on Monday and potential changes in Federal Reserve monetary policy.