March kicked off on a high note on Wall Street Friday, with both the S&P 500 and Nasdaq 100 indices soaring to unprecedented heights, fueled by the unstoppable surge of tech stocks.

Despite the sharper-than-expected contraction revealed by the ISM Manufacturing PMI in February – with the overall index plummeting from 49.5 to 47.8, missing the anticipated 49.1 – investors remained upbeat. The data triggered downward pressure on the dollar and Treasury yields, maintaining firm expectations for Federal Reserve rate cuts.

Fed speakers – including Goolsbee, Waller and Bostic – offered a mixed bag of remarks, though collectively acknowledging the ongoing progress toward disinflation. Additionally, a Fed report highlighted that inflation expectations broadly align with the 2% target.

In the tech sector, the semiconductor industry continued its remarkable performance, buoyed by escalating demand for chips associated with artificial intelligence. The industry benchmark, as monitored by the iShares Semiconductor ETF (NASDAQ:SOXX), surged 3.7% following a 2.7% leap on Thursday, marking its highest level since inception.

Gold, as tracked by the SPDR Gold Trust (NYSE:GLD), is up 2% to $2,085/oz, on track for the strongest session since mid-December and set to close at all-time highs.

Friday’s Performance In Major US Indices, ETFs

The Technology Select Sector SPDR Fund (NYSE:XLK), was the outperformer, up by 1.4%, while the Utilities Select Sector SPDR Fund (NYSE:XLU) lagged behind, down 1.2%.

Chart of The Day: S&P 500, Nasdaq Jointly Reach All-Time Highs

Friday’s Stock Movers

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Image created using artificial intelligence via MidJourney.