Stock Market Today: Nvidia Tops $2 Trillion in Market Cap

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published 23 February 2024

The Nasdaq Composite kept investors on edge for most of Friday as the tech-heavy index hovered around record-high territory. Stocks jolted higher out of the gate, but a midday retreat put the milestone just out of reach.

At the close, the Nasdaq was down 0.3% at 15,996, slightly below its closing peak of 16,057.44 set in November 2021. The S&P 500 (+0.03% at 5,088) and the Dow Jones Industrial Average (+0.2% at 39,131), however, did notch new record closes today. All three indexes finished higher on a weekly basis thanks to Thursday's sizzling session.

Yesterday's upside came almost solely at the hands of Nvidia (NVDA), which spiked more than 16% in reaction to the chipmaker's impressive earnings report. NVDA kept climbing today, adding another 0.4%.

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"Nvidia has become the bellwether stock for activity in the artificial intelligence (AI) space," says Michael Gregory, deputy chief economist at BMO Capital Markets. "And rocketing top-line revenue points to continued diffusion of AI and other advanced computing technologies across the U.S. (and global) economy."

Nvidia's market value briefly topped the $2 trillion mark in the intraday session, before settling just below here at $1.975 trillion. It's an elite group of companies with market caps above $2 trillion, with Dow Jones stocks Apple (AAPL, -1.0%) and Microsoft (MSFT, -0.3%) the only members. NVDA first hit the $1 trillion market cap level in June.

Block soars after earnings

NVDA wasn't the only notable mover today. Block (SQ) spiked 16.1% after the payments company said fourth-quarter earnings nearly doubled on a year-over-year basis to 45 cents per share. Revenue was 24% higher at $5.77 billion. Additionally, the company's Cash App Card active monthly users surged 20% to 23 million.

In his letter to SQ shareholders, Block CEO Jack Dorsey said the company is "focused on growing within the U.S., not expanding into new markets, and we're focused on driving growth through inflows per active more than actives." This strategy will allow Block "to build the largest network in the long run, with a highly engaged customer base using Cash App as their primary banking solution," he notes.

Still, CFRA Research analyst Caydee Blankenship maintained a Hold rating on the fintech stock. "While SQ's cost-cutting measures (headcount reductions and lower sales/marketing spending) signal a positive direction, we remain cautious about the potential long-term implications for business growth," the analyst wrote in a note.

Elsewhere, Intuitive Machines (LUNR) jumped 15.8% after the company said its spacecraft Odysseus landed on the moon. This marked the first time a commercial vehicle has accomplished such a feat.

Inflation data, Salesforce earnings on deck

Looking ahead, all eyes will be on the Thursday morning release of the January Personal Consumption and Expenditures (PCE) index, the Fed's preferred measure of inflation that tracks consumer spending. Additionally, blue chip stock Salesforce (CRM, -0.3%) headlines a relatively full earnings calendar.

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With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.