AI Momentum and Earnings Lift Tech Leaders; Rate Fears Weigh on Financials

Over the past month, technology stocks surged on strong AI-driven earnings, while financials declined amid rising speculation about Federal Reserve policy shifts. Nvidia led gains with a 22% rally, while JPMorgan Chase posted a 9% drop.

Nvidia Corp. emerged as the top-performing stock in the past 30 days, climbing 22% after reporting fourth-quarter revenue of $26.9 billion—surpassing analysts’ expectations by 14%. The surge was fueled by robust demand for its Hopper and Blackwell GPU platforms, with data center revenue growing 102% year-over-year. The stock's market capitalization now exceeds $2.3 trillion, solidifying its position as the most valuable U.S. semiconductor company. In contrast, financial sector stocks faced downward pressure. JPMorgan Chase & Co. declined 9% after its quarterly results revealed a 12% drop in net interest income, driven by declining loan yields and a flattening yield curve. The bank also cautioned about elevated credit losses in consumer lending, prompting analysts to revise earnings forecasts downward by 7% on average across the sector. Other tech performers included Microsoft Corp., which rose 15% following the launch of its new AI-powered Copilot+ PCs and a 24% increase in Azure cloud revenue. Meanwhile, Alphabet Inc. gained 11% after its Q4 ad revenue surpassed $74 billion, driven by strong performance in Google Search and YouTube. The S&P 500 closed the month with a 3.2% gain, but sector divergence was stark: the technology sector rose 8.4%, while financials dropped 4.1%. Investors remain focused on upcoming Fed commentary, with market-implied odds of a rate hike in March rising to 68%, according to CME Group data.