The US stock market recorded significant increases on Thursday, largely driven by Wall Street’s exemplary performance and reassuring earnings from American technology company, Nvidia. These positive figures saw the S&:P 500 and Dow Jones Industrial Average exceed previous records.
Nvidia’s earnings surpassed analysts’ predictions, causing their share price to surge and heavily influencing the Dow Jones and the S&P 500. Also pivotal was Wall Street’s stellar performance, fueled by continuous positive economic data and investor confidence. These advantageous reports and evolutions have cultivated a bullish environment positively affecting the US stock market.
The Dow leaped 457 points, equivalent to a 1.2% increase, while the S&P experienced a growth of 2.1%. The Nasdaq Composite also elevated by 3%, signifying the highest figures for the S&P and Nasdaq in over a year, and a new all-time high for the Dow. The growth among tech companies helped propel the Nasdaq while multinational corporations largely influenced the Dow’s performance.
Nvidia’s significant success featured prominently in the market uptick. The company’s valuation increased by 16.4% pushing its net worth by a staggering $277 billion. This notable rise represents the largest ever single-day increase and was mainly propelled by Nvidia’s superior earnings report.
During their earnings call, Nvidia, a dominant player in the semiconductor industry, stressed on the transformative influence of AI across all sectors and regions. In keeping with this, the company displayed an impressive annual earnings growth of 580%, and a year-over-year surge of 769%. This ripple effect can be seen in other tech corporations like AMD, Microsoft, Meta, Amazon, and Apple, all of whom greatly benefitted from Nvidia’s performance.
However, amidst these positive returns, the market remains wary of the Federal Reserve’s plans to preserve high interest rates. This was accentuated on Wednesday when Fed officials expressed concerns about on-going inflation during last month’s policy discussion. Following this announcement, traders anticipate that the Federal Reserve may not disable rates until summer potentially as late as June or July.
