New York – U.S. stocks surged to new heights on Thursday following the impressive earnings report from Nvidia, the third-largest company on Wall Street. The stock market was bolstered by this news, with both the S&P 500 and Dow Jones Industrial Average reaching new record highs, and the Nasdaq coming close to its own all-time high.
The Dow closed the day 457 points, or 1.2%, higher, while the S&P 500 gained 2.1% and the Nasdaq Composite rose by 3%. Both the S&P 500 and Nasdaq had their best days in over a year, and the Dow surpassed the 39,000 level for the first time.
Nvidia saw a tremendous surge as well, with its stock rising by 16.4% after reporting exceptional earnings growth due to the artificial intelligence boom. This increase in value marked the largest-ever one-day jump for the company, adding $277 billion to its market cap.
The CEO of Nvidia, Jensen Huang, expressed his confidence in the continued growth of generative AI, stating that demand for this technology is surging worldwide across various industries and nations. The company’s remarkable financial performance reflects this positive outlook, with a 769% increase in year-over-year income and a more than 580% rise in full-year profits.
The positive news from Nvidia also had a ripple effect on other chipmakers and tech stocks. Companies like AMD and Microsoft experienced significant increases in their stock value, while tech giants like Meta, Amazon, and Apple also saw favorable gains. However, Intel, which had outlined its plans to compete with Nvidia the day before, experienced a slight decline in its stock value.
Despite the Nvidia-led rally, concerns about the Federal Reserve keeping interest rates higher for longer persisted, as recent minutes released by the Fed showed continued worries about stubbornly elevated inflation. This could potentially impact borrowing costs for Americans on various financial products, from car loans to mortgages.
Overall, Nvidia’s remarkable performance and the subsequent market rally demonstrate the significant impact of technological advancements in driving economic growth and shaping investor sentiment. As the world continues to embrace AI and other innovative technologies, the influence of tech companies like Nvidia on the financial landscape is likely to grow even further in the future.