Lyft Surges 35%. Bitcoin Market Cap Back Over $1 Trillion

Equities

In a generally buoyant day for Wall Street, Robinhood Markets rallied 13% after announcing an unexpected fourth-quarter profit. Cryptocurrency-related stocks like Coinbase, Marathon Digital, and Riot also saw surges of over 13% each as Bitcoin's market value surpassed $1 trillion for the first time since November 21.

On Wednesday, The S&P 500 advanced by 0.96% to close at 5,000.62 points, buoyed by the stellar performance of certain tech giants and ride-hailing platforms. Concurrently, the Nasdaq Composite index rose by 1.30% to settle at 15,859.15 points.

Uber and Lyft added to the gains, while Nvidia surpassed Alphabet to become the third most valuable company in the US stock market. Nvidia's shares gained 2.5%, reaching a market capitalisation of $1.825 trillion. Uber's stock soared almost 15% following the announcement of a $7 billion share buyback plan, marking a record high for the company. Lyft, on the other hand, experienced a staggering 35% surge after reporting a quarterly profit that exceeded estimates and announcing its expectation to generate positive free cash flow for the first time in 2024.

The rally was further bolstered by Super Micro Computer, which jumped over 11%, benefiting from recent AI-related advancements.

Meanwhile, in the UK, the stock market also ended on a positive note, with the FTSE 100 index climbing by 0.8% and the FTSE 250 index up by 0.4%. This came after the release of softer-than-expected inflation data, which provided some reassurance to investors about the future direction of the Bank of England's monetary policy.

Noteworthy movements in the UK market included Coca-Cola HBC, which leapt by 8.0% after forecasting profit growth in 2024 and posting a record annual profit. However, TUI's shares declined by 6.3% following its decision to relocate its listing to Frankfurt, reflecting the challenges faced by the London stock market in retaining and attracting significant corporate listings.

Forex & Commodities

Gold prices remained subdued below the crucial $2,000-per-ounce mark, influenced by the release of US inflation data that exceeded expectations. This led to a recalibration of investor expectations regarding the timing of Federal Reserve rate cuts, with a shift in anticipation towards June rather than earlier in the year. Spot gold steadied at $1,991.92 per ounce, marking its lowest point since December 13.

Conversely, palladium jumped 8.4%, reaching $935.91, outpacing its sister metal, platinum, which also saw a gain of 1.9% to $888.54. This surge in palladium prices came after a period of decline, sparking interest from physical buyers aiming to capitalise on lower prices.

In the currency markets, the US dollar experienced limited movement. The yen managed to avoid further losses despite Japan's economy entering a recession, thanks to official warnings against rapid movements in the currency. The dollar index is holding around 104.6.

Oil prices witnessed a downturn following a report that US crude inventories had unexpectedly surged, suggesting potential softness in demand within the world's leading oil consumer. Brent crude futures fell by 0.4% to $81.26 a barrel, and West Texas Intermediate crude futures decreased by 0.5% to $76.26 a barrel.