The Dow hit a fresh record on Thursday while the other major averages also rose as investors assessed Nvidia’s (NVDA) earnings and data showing the US economy grew more than expected.
The Dow Jones Industrial Average (^DJI) gained more than 350 points to hit a new all-time high. The tech-heavy Nasdaq Composite (^IXIC) rose more than 1%, while the S&P 500 (^GSPC) moved up roughly 0.5% on the heels of losses for all three gauges.
Stocks are taking a positive sheen amid Wall Street’s lackluster reception for the numbers from Nvidia, whose stellar growth streak has underpinned the market’s rally this year.
While the AI chipmaker’s quarterly profit and revenue guidance topped estimates, the size of the beats fell short of high-running hopes. That started to stir questions as to whether the AI boom has peaked. Wall Street remained bullish on the stock, but shares still fell as much as 3% during the session.
Elsewhere in earnings, Salesforce (CRM) shares popped after a big earnings beat by the software maker. Best Buy (BBY) shares soared 17% after the retailer posted better-than expected results as its sales stabilize. Meanwhile, Dollar General (DG) shares tanked 25% after the retail chain cut its full year outlook and blamed softer sales in the second quarter on “financially constrained” customers.
The US economy grew at a stronger pace than expected in the last quarter, according to a reading of gross domestic product released on Thursday. Second-quarter GDP increased at an annual rate of 3%, up from a prior estimate of 2.8%.
Weekly US jobless claims came in at 231,000, a decline from the prior week, and lower than 232,000 expected by economists.
The market is closely watching economic data for a steer on how fast and deep the Federal Reserve will lower interest rates, now that Chair Jerome Powell has clearly flagged a cut is coming in September.
Live10 updates
-
-
-
Tech sector gains, despite Nvidia stock falling
Tech is having a moment — without the participation of Nvidia (NVDA).
Shares of Nvidia lost as much as 3% during the session after the AI chip maker’s strong quarterly results failed to move the stock price higher.
However the rest of the “Magnificent 7” names gained during the session, helping move the Nasdaq Composite (^IXIC) up roughly 1%.
Nvidia was the only Mag 7 stock in red on Thursday -
-
Nvidia shares fall 2%, while others in chip sector rise
Nvidia (NVDA) shares dipped 2% in early trading while the rest of the semiconductor space mostly rose on Thursday, helping lift the Nasdaq.
Nvidia’s quarter was strong but it didn’t live up to exceptionally high Wall Street expectations. Shares dropped as much as 6% soon after the company released its quarterly results on Wednesday, but pared most of that decline by the open.
Many on Wall Street remained positive on Nvidia following the results, pointing out the strong quarter and mostly brushing off uncertainty surrounding the ramp-up of Nvidia’s nextgeneration chip Blackwell.
“We cover the stock very, very closely. Blackwell is not a concern. If anything its extremely bullish,” Beth Kindig, I/O Fund Lead Tech Analyst told Yahoo Finance on Thursday morning.
“Now the valuation when you have a high flyer like Nvidia, can get stretched sometimes. Going into the print, we warned our members that this valuation is looking a little toppy,” she added.
Nvidia was the laggard in semiconductors on Thursday. -
-
-
-
-
