Latest News

US stocks soar; Nvidia’s strong outlook drives tech rally

0

US stocks soar; Nvidia’s strong outlook drives tech rally By Investing.com

Breaking News

‘;

AuthorPeter NurseStock Markets

Published Feb 21, 2024 23:54
Updated Feb 22, 2024 14:42

© Reuters

Investing.com– U.S. stocks rose strongly Thursday, with a blockbuster earnings report from AI darling Nvidia boosting sentiment, particularly in the tech sector.

By 09:35 ET (14:35 GMT), the Dow Jones Industrial Average was up 240 points, or 0.6%, S&P 500 traded 65 points, or 1.3%, higher and Nasdaq Composite climbed 315 points, or 2%.

Nvidia surges on strong Q4 results, outlook  

Nvidia (NASDAQ:NVDA) stock jumped over 12% Thursday, climbing to within sight of record highs hit earlier in February, after the world’s most valuable chipmaker reported stronger-than-expected fourth quarter earnings, and forecast first quarter revenue at about $24 billion, more than what analysts were expecting. 

The strong earnings and outlook signaled that the firm expected to continue reaping the benefits of increased demand for AI development, given that it is a key producer of chips geared specifically towards the large-language models which surged in popularity through 2023. 

Nvidia’s gains spilled over into other major tech stocks, given that investors expect AI demand to also boost the broader tech sector in the coming months. Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) all posted healthy gains, with all three having AI products in the pipeline. 

Similarly, major chipmaking stocks, such as TSMC (NYSE:TSM) Micron Technology (NASDAQ:MU) and Intel (NASDAQ:INTC), which are expected to benefit from increased AI demand, also traded higher.  

Additionally, the likes of Palantir Technologies (NYSE:PLTR), Advanced Micro Devices (NASDAQ:AMD) and Super Micro Computer (NASDAQ:SMCI) powered ahead in Nvidia’s slipstream. 

Corporate earnings continue

There are more quarterly results to digest Thursday, with Moderna (NASDAQ:MRNA) reporting a surprise fourth-quarter profit helped by cost cutting and some deferred payments, while Live Nation Entertainment (NYSE:LYV) and Intuit (NASDAQ:INTU) are scheduled for after the close. 

Additionally, Etsy (NASDAQ:ETSY) slumped 8% after the e-commerce firm reported mixed earnings and guidance, while electric vehicle manufacturer Rivian Automotive (NASDAQ:RIVN) fell 22% after it forecast a disappointing production figure for 2024.

Royal Caribbean (NYSE:RCL) stock rose 6% after the cruise operator raised its full-year income forecast, saying it has been encouraged by both the “demand and pricing environment” in 2024.

Wayfair (NYSE:W) stock gained 7% after the online furniture retailer reported a narrower-than-expected fourth-quarter loss and said it returned to positive active customer growth.

PMI data to provide economic update 

Data released earlier Thursday showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting that job growth likely remained solid in February.

This added to a sense of wariness over future monetary policy, which followed the Fed minutes, released on Wednesday, largely reiterating the central bank’s stance on keeping interest rates elevated in the near-term.

The focus later in the session will likely be on the manufacturing and services PMI data for February, which will provide a more up to date gauge of the health of the U.S. economy.  .

Crude retreats after large inventories build

Oil prices retreated Thursday, after another hefty build in U.S. inventories overtook concerns over tightening global supplies due to disruptions in the Middle East. 

By 09:35 ET, the U.S. crude futures traded 0.7% lower at $77.37 a barrel, while the Brent contract dropped 0.7% to $82.46 a barrel. 

Data from the American Petroleum Institute showed U.S. inventories grew by 7.2 million barrels in the week to February 16, much more than expectations for a build of 4.3 million barrels. 

While the build was smaller than the 8.5 million barrel build reported by the API for the prior week, it was a third straight week of builds in U.S. inventories, and signaled that the world’s largest fuel consumer remained well supplied.

Official numbers from the Energy Information Administration are due later in the session.

Additionally, gold futures rose 0.1% to $2,034.95/oz, while EUR/USD traded 0.1% lower at 1.0813.

(Ambar Warrick contributed to this article.)

US stocks soar; Nvidia’s strong outlook drives tech rally

Related Articles

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Lloyds profit rises despite murky UK outlook and motor loans charge

Previous article

How Much Social Security Did High- and Low-Income Retirees Get in 2023?

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News