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23/05/24
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Wall Street Generally Higher, Led by Tech Sector
On Thursday, stocks on Wall Street were generally higher as the tech sector led the way after positive guidance and earnings from Nvidia.
The NASDAQ Composite soared 175 points, or 1%, the S&P 500 climbed 23 points, or 0.4%, and the Dow Jones Industrial Average fell 15 points, or 0.1%.
Sentiment was boosted by Nvidia releasing strong numbers, with the chipmaker generally seen as a bellwether for artificial intelligence and tech demand.
Nvidia’s stock rallied over 7% and reached a record high after its first-quarter earnings were much higher than estimates. The company also gave a higher-than-expected revenue forecast for this quarter, as it is still benefiting from strong demand.
Nvidia also announced a forward stock split of 10-for-one.
The chipmaker’s earnings indicated that demand from the AI industry is still strong, which also boosted other major chipmakers’ shares. Peers Broadcom and Advanced Micro Devices rose around 3% each, while chip designer Arm Holdings rose nearly 4% and memory chip maker Micron Technology rose over 3%.
Although Nvidia’s positive earnings led to tech stocks gaining, wider equity markets were still skittish amid growing worries that interest rates would stay higher for longer than expected, especially after Fed officials repeatedly warned about sticky inflation.
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