HomeLatest NewsNvidia's Strong Performance Boosts S&P 500 to All-Time High

Nvidia’s Strong Performance Boosts S&P 500 to All-Time High

Fresh Record High for S&P 500 on Nvidia’s Stellar Results

AI-Led Rally Boosts Benchmark to New Heights

The benchmark S&P 500 briefly hit a fresh record on Thursday following Nvidia’s stellar results and forecast, which fueled the artificial intelligence-led rally this year. Nvidia’s shares surged 12.9% after the chip designer forecast a roughly three-fold surge in first-quarter revenue on strong demand for its AI chips.

Strong Performance Drives Market Optimism

Nvidia’s impressive fourth-quarter revenue results and promising forecast could potentially add over $200 billion in market capitalization, if gains hold. At 09:42 a.m. ET, the benchmark S&P 500 was up 1.31% at 5,047.07, after hitting an intraday record high of 5051.37 earlier in the session.

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Technology Stocks Lead Gains

Eight of the 11 major S&P 500 sectors rose in early trading, with technology stocks leading gains with a 3.8% jump. The broader market also saw positive movements, with the Dow up 226.78 points, or 0.59%, at 38,839.0, and the tech-heavy Nasdaq up 332.50 points, or 2.13%, at 15,913.37.

Beneficiaries of AI Boost

Shares of other companies, seen as beneficiaries of the AI boost, also got a shot in the arm. Nvidia’s rival Advanced Micro Devices, server component supplier Super Micro Computer, and Arm Holdings jumped between 6.9% and 16.8%. The Philadelphia Semiconductor index climbed 4%.

Big Tech and Growth Stocks Rise

Big Tech and growth stocks such as Alphabet, Microsoft and Meta Platforms rose between 0.8% and 2.4%. Nvidia’s earnings were a major test for the AI-fueled rally on Wall Street that pushed the S&P 500 beyond the 5,000 point mark earlier this month. Some analysts had cautioned that disappointing results could spark a steep selloff among technology stocks.

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Market Sentiment and Economic Indicators

Investors stuck to bets the U.S. Federal Reserve will begin cutting interest rates in June after minutes from the central bank’s latest meeting showed a majority of policymakers were concerned about the risks of easing policy too soon. Data showed initial jobless claims fell to 201,000 in the week ended Feb. 17 from 213,000 in the previous week, signaling the labor market remained tight.

Surveys on business activity in February from S&P Global will also be in focus after markets open. Moderna jumped 5.4% on a surprise fourth-quarter profit, helped by cost cutting and some deferred payments. Rivian and Lucid fell 22.7% and 9.5%, respectively, after the electric vehicle startups forecast 2024 production well below analyst estimates on slowdown in demand.

Advancing issues outnumbered decliners by a 1.94-to-1 ratio on the NYSE and by a 1.58-to-1 ratio on the Nasdaq. The S&P index recorded 42 new 52-week highs and no new lows, while the Nasdaq recorded 43 new highs and 32 new lows.

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