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Today’s stock market: Stocks driving up the Nasdaq and S&P 500

Today's stock market: Stocks driving up the Nasdaq and S&P 500

On Thursday, the Nasdaq and S&P 500 broke new intraday highs as a result of Nvidia’s (NVDA) spectacular earnings, which stoked hopes that the AI rally has further upside.

While the S&P 500 (^GSPC) increased by 0.6%, the tech-heavy Nasdaq Composite (^IXIC) increased by as much as 1%. With fewer tech stocks, the Dow Jones Industrial Average (^DJI) fell 0.3%.

After Wall Street’s extremely high expectations for first-quarter earnings were blown away by the AI bellwether, Nvidia shares surged more than 8% to surpass $1,000 for the first time. In addition, the chip giant increased its guidance, allaying concerns that the market for AI would be cooling.

On the strength of the findings, several chipmakers and AI-related stocks gained ground. For example, server manufacturers Dell (DELL) and Super Micro Computer (SCMI) saw increases of roughly 6% and 5%, respectively.

The market was able to ignore the worries about interest rate hikes that had fueled the losses of the day before thanks to the Nvidia frenzy. The Federal Reserve minutes, which showed that some officials are willing to keep rates higher this year if inflation doesn’t decline as expected, caused stocks to decline.

May’s manufacturing and services PMI was 54.8, down from 51.3 the previous month. Earlier this month, despite the Fed’s efforts to curb price pressures, business activity surged at the highest pace in two years, according to the flash data, which came in higher than what economists had predicted.

AI has also helped corporations in other places. The stock of cloud-based analytics startup Snowflake (SNOW) increased by 4% following a positive sales forecast. News Corp. (NWS) has experienced growth as a result of an agreement it made with Microsoft-backed OpenAI, which should allow ChatGPT to access material from publications such as The Wall Street Journal.

Nasdaq and S&P 500 touched new intraday records after Nvidia’s blowout quarter

Thursday saw a sharp rise in the Nasdaq and S&P 500, setting new intraday records in the wake of Nvidia’s (NVDA) spectacular quarter. At the opening, the AI chip maker’s shares shot up more than 7%, crossing $1,000 per share for the first time.

The S&P 500 (^GSPC) increased by 0.6%, while the Nasdaq Composite (^IXIC) increased by around 1%. The Dow Jones Industrial Average (DJI) experienced a little increase.

Thanks to Nvidia’s first-quarter performance, the gains were concentrated in the technology and communications services stocks. The giant in AI chips far exceeded Wall Street’s predictions.

In addition, the business increased its guidance, allaying worries that this year’s switch to next-generation chips might cause demand to decline.

Thanks to Nvidia’s first-quarter performance, the gains were concentrated in the technology and communications services stocks.

The giant in AI chips far exceeded Wall Street’s predictions. In addition, the business increased its guidance, allaying worries that this year’s switch to next-generation chips might cause demand to decline.

Nvidia CEO Jensen Huang stated in a special interview with Yahoo Finance that “people want to deploy these data centers right now. They want to put our [graphics processing units] to work right now and start making money and saving money. And so that demand is just so strong.”

S&P 500 pares gains after hot PMI print

The S&P 500 (^GSPC) pared earlier market gains after a reading of the S&P Global Purchasing Managers Index (PMI) showed an acceleration of business act at the beginning of May.

Yields on the 10-year treasuries (^TNX) rose about 4 basis points to 4.47%, putting pressure on stocks.

The S&P 500 and Nasdaq Composite (^IXIC) both rose to touch fresh intraday highs earlier in the session on the heels of Nvidia’s (NVDA) blowout quarter.

The Dow Jones Industrial (^DJI) average moved to session lows, down 0.5%.

Nvidia CEO makes a key point to Yahoo Finance

Premarket, Nvidia (NVDA) shares are up almost 7% following yet another strong quarter and yet another strong earnings call.

However, the revelation about the world’s most significant firm didn’t end there.

After the earnings call, CEO and creator of Nvidia Jensen Huang had an exclusive interview with Yahoo Finance’s Julie Hyman and Dan Howley.

Huang took prompt action to allay worries of a slowing in demand for the potent chips driving the generative AI revolution:

They want to start using our graphics processing units immediately to start saving and earning money. Thus, Huang stated, “That demand is just so strong.”

Right now, people want to install these data centers.

Wall Street also noticed Huang’s pushback against any downturn in demand, and they published a report this morning that keeps buying ratings intact and raises projections.

Huang’s whole discussion with Yahoo Finance is below. Julie and Dan provide more context here.

Read More:

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Source

Yahoo Finance

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