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Nasdaq and S&P 500 Futures Pop as Nvidia Galvanizes Stocks
The Nasdaq and S&P 500 were expected to rise on Thursday following Nvidia’s (NVDA) blockbuster earnings lit a fire under optimism that the AI rally has more room to run.
Futures on the tech-heavy Nasdaq 100 (QN=F) jumped nearly 1%, while S&P 500 futures (ES=F) rose 0.6%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer technology stocks, rose 0.1%.
Nvidia shares rose more than 7% to $1,000 for the first time in pre-market trading after AI bellwether exceeded Wall Street’s sky-high forecasts for first-quarter earnings. The chip giant also raised its guidance, easing fears that demand for AI may be losing steam.
Other chipmakers and AI-related stocks I walked higher on the tail of the results, with server manufacturers Dell (DELL) and Super Micro Computer (SCMI) increased by around 6% and 5%, respectively.
Nvidia’s euphoria helped the market put aside concerns about rising interest rates that fueled the losses from the previous day. Stocks fell after Federal Reserve minutes revealed some lawmakers are open to keeping rates higher for longer this year if inflation does not cool as projected.
See more information: How does the job market affect inflation?
The release of May industry and services PMI data on Thursday should give investors more information about how the economy is performing in the face of the Fed’s efforts to contain price pressures.
Elsewhere, AI hopes have given companies a boost. Cloud-based analytics company Snowflake’s (SNOW) shares rose 4% following a optimistic sales outlook. Meanwhile, News Corp.US) made an impact after the media giant signed a handle Microsoft-backed OpenAI this should give ChatGPT access to content from The Wall Street Journal and other titles.
Live update1
- Thu May 23, 2024 at 11:44 GMT+2
Nvidia CEO makes an important point about Yahoo Finance
Nvidia (NVDA) shares were up about 7% in premarket trading after another big quarter AND another big earnings release.
But the vision of the most important company in the world didn’t stop there.
Yahoo Finance Julie Hyman It is Dan Howley spoke exclusively with Nvidia founder and CEO Jensen Huang following the earnings call.
Huang moved quickly to calm any concerns about a slowdown in demand for the powerful chips that are leading the generative AI movement:
“People want to deploy these data centers now. They want to put our [graphics processing units] work now and start earning money and saving money. And so this demand is very strong,” Huang said.
Resistance to any slowdown in demand from Huang was also spotted by Wall Street, which reported this morning, leaving buy ratings intact and raising estimates.
Yahoo Finance’s full chat with Huang below. More context from Julie and Dan here.