S&P Steers Toward New Record
The S&P 500 reached new heights on Thursday as traders pored over Nvidia’s earnings results and forecast. Investors largely looked at the numbers as affirming the AI boom.
The Dow Jones Industrials regrouped 40.32 points to pause for lunch Thursday at 45,605.55.
The broader index moved ahead 13.91 points to 6,495.31.
The NASDAQ surged 109.14 points to 21,698.49.
The market is coming off a winning session Wednesday with the S&P 500 notching a record in anticipation of strong Nvidia results. The S&P 500 and the NASDAQ are each up more than 2% for August, while the 30-stock Dow is up more than 3% in the period.
Nvidia – which makes up about 8% of the S&P 500, per FactSet – reported second-quarter results that beat Wall Street’s estimates with booming revenue growth of 56%. There were a couple initial concerns: first, revenue for its data center business was a hair under estimates.
Second, the company guided overall revenue for this quarter of $54 billion, only slightly above expectations of $53.1 billion of analysts polled by LSEG.
The stock initially saw declines but came back by the open.
It’s currently more than 1% lower. Many traders and analysts noted that the revenue guide does not assume any H20 chip sales to China. If a deal can be worked out involving China and the Trump administration on those sales, then revenue this quarter could be much better than forecast.
Other chipmakers that initially fell began recovering. Broadcom traded 2% higher, as did Micron Technology, signaling that many investors believe Nvidia’s results gave the greenlight for the AI trade to continue.
Prices for 10-year Treasury gained ground Thursday, weighing yields to 4.21% from Wednesday’s 4.24%. Treasury prices and yields move in opposite directions.
Oil prices decreased 48 cents to $63.67 U.S. a barrel.
Gold prices gained $24.30 at $3,472.90 U.S. an ounce.
