Wall Street stocks show recovery in early trade on caution on rising inflation
Date
5/26/2024 5:12:34 AM
(MENAFN) At the beginning of trading on Friday, the main indices on Wall Street showed signs of recovery following a previous session marked by declines attributed to ongoing concerns over high inflation. This cautious sentiment regarding monetary policy persisted ahead of a long holiday period. The Dow Jones Industrial Average rose by 23.97 points, or 0.06 percent, reaching 39,089.23 points. Similarly, the Standard & Poor's 500 index opened with a gain of 13.61 points, or 0.26 percent, reaching 5,281.45 points, while the nasdaq Composite index increased by 50.76 points, or 0.30 percent, to 16,786.79 points.
During Thursday's early trading session, both the Nasdaq and Standard & Poor's 500 indices experienced gains driven by robust performances in chip-related companies. This optimism was fueled by Nvidia's announcement of anticipated strong revenues, which bolstered investor confidence in the growth potential of artificial intelligence technologies. Nvidia's shares surged by over 9 percent at the start of trading, buoyed by the company's projection of higher-than-expected revenues for the second quarter. The optimism stemmed from significant demand for chips utilized by companies embracing artificial intelligence technologies. Nvidia also unveiled plans for a stock split, further boosting investor sentiment.
Nvidia anticipates second-quarter revenues to reach $28 billion, with a margin of plus or minus two percent. This positive outlook reflects the increasing integration of artificial intelligence technologies across various industries and underscores Nvidia's position as a leading player in the chip market. Overall, these developments contributed to the rebound of Wall Street indices in early trading, despite lingering concerns surrounding inflation and its potential impact on monetary policy decisions.
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