Nasdaq Jumps Over 1% As Nvidia Forecast Sparks AI-Driven Rally


(MENAFN- Khaleej Times) The tech-heavy Nasdaq rose more than 1 per cent on Thursday as Nvidia shares soared on a blowout forecast that also lifted other AI-related companies, while investors watched for signs of progress in US debt ceiling talks.

Shares of Nvidia Corp, the world's most valuable listed chip company, jumped 26.3 per cent to hit a record high, after it forecast quarterly revenue 50 per cent higher than estimates and said it was ramping up supply to meet demand for its artificial-intelligence (AI) chips.

Heavyweight AI players such as Microsoft Corp and Alphabet Inc rose about 3.2 per cent and 2.8 per cent, respectively.

The Philadelphia SE Semiconductor index advanced 5.9 per cent to its highest level in more than a year and will log its biggest daily percentage rise in more than six months, if gains hold.

"It has become fairly clear that AI is the beginning of a big investment boom and will be solving real problems. They have immediate applications and it also benefits major companies that are already the backbone of the stock market," said David Russell, vice president of market intelligence at TradeStation.

Other chip companies including Advanced Micro Devices Inc , Micron Technology Inc and Broadcom Inc rose between 3.4 per cent and 10.3 per cent.

Intel Corp, which has little AI exposure, fell 6.8 per cent, limiting gains for S&P 500.

Wall Street's main indexes have dropped sharply in the last two sessions and could log their worst week in more than two months as investors await clarity on a deal to raise the nation's $31.4 trillion debt ceiling or risk a default.

US President Joe Biden and Republican lawmaker Kevin McCarthy were edging close to a deal on the US debt ceiling, with the parties just $70 billion apart on discretionary spending, Reuters reported, citing a source familiar with the talks.

Reflecting the market uncertainty, two-year yields hit their highest since March after ratings agencies Fitch and DBRS Morningstar put the United States on a credit watch for a possible downgrade.

Meanwhile, data showed the number of Americans filing new claims for unemployment benefits rose only moderately last week, while a Commerce Department report confirmed economic growth slowed in the first quarter.

At 12:03 p.m. ET, the Dow Jones Industrial Average was down 155.23 points, or 0.47 per cent, at 32,644.69, the S&P 500 was up 23.47 points, or 0.57 per cent, at 4,138.71, and the Nasdaq Composite was up 191.44 points, or 1.53 per cent, at 12,675.60.

Ralph Lauren Corp rose 8.6 per cent after the luxury retailer beat profit estimates.

Electronics retailer Best Buy Co Inc rose 1.2 per cent on upbeat quarterly earnings, while discount store chain Dollar Tree Inc fell 11.3 per cent on cutting its annual profit outlook.

Declining issues outnumbered advancers by a 2.67-to-1 ratio on the NYSE and by a 2.35-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and 30 new lows, while the Nasdaq recorded 41 new highs and 124 new lows.

MENAFN25052023000049011007ID1106317213


Khaleej Times

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.