The S&P 500 index surged past the 5,000-point threshold by the week’s end, setting new record highs on the optimism surrounding artificial intelligence. Both the S&P 500 and the Nasdaq 100 celebrated their 14th positive week out of the last 15, showcasing the resilience of the winter rally.
The Magnificent Seven companies – Microsoft Corp. MSFT, Apple Inc. AAPL, Alphabet Inc. GOOG GOOGL, Amazon Inc. AMZN, Meta Platforms Inc. META, NVIDIA Corp. NVDA and Tesla, Inc. TSLA – collectively skyrocketed to a market capitalization
of $13 trillion, accounting for nearly half of the entire U.S. economy and matching the combined GDP of Germany, Japan and India.
Among the Russell 1000, Palantir Technologies Inc. PLTR emerged as the top performer of the week, surging over 40%. Conversely, New York Community Bancorp NYCB lagged behind, plummeting nearly 30% amid concerns surrounding its commercial real estate portfolio.
S&P 500 Breaks 5,000, Achieves Fifth Consecutive Week of Gains
Tesla’s Place among the Elite: Tesla’s spot among the Magnificent Seven group of largest S&P 500 companies is shaking as its market cap falls, positioning it ninth. Eli Lilly Company LLY and Berkshire Hathaway Inc. BRK have overtaken Tesla, with Broadcom closely
trailing and set to join the ranks. Tesla’s recent stock decline mirrors obstacles including slowing electric vehicle demand.
Facebook Celebrates 20 Years: Investing $1,000 in Facebook at its IPO in May 2012 would have multiplied to $10,180 by February 2024, indicating a notable return. Despite controversies and challenges, Facebook’s parent company Meta Platforms has demonstrated resilience, with strong financial performance and strategic acquisitions contributing to its growth.
Novo Nordisk’s Exemplary Status: Novo Nordisk NVO‘s weight-loss drugs Wegovy and Ozempic are initiating a transformation in the food industry as CEOs adapt to the decreased appetite these medications induce. This has led to a drive for healthier food options in response to the altering consumer demand, impacting companies from Walmart Inc. WMT
to Chipotle Mexican Grill Inc. CMG.
Ackman’s Focus on Retail Investors: Billionaire Bill Ackman launched Pershing Square USA, a proposed fund on the NYSE targeting retail investors, with no minimum investment requirement. This move democratizes access to hedge fund investments, leveraging Ackman’s notable successes.
Alexa’s Privacy Concerns: Amazon’s Alexa, now present in 100 million homes, is set for significant AI enhancements, as announced by Jeff Bezos. Despite its popularity, concerns are mounting over privacy, with Alexa’s deep integration into daily life sparking questions about the balance between convenience and user privacy. Amazon aims to make Alexa more conversational and personalized, emphasizing the potential trade-off of increased convenience against privacy risks.
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