The S&P 500 and Nasdaq Composite jumped Thursday as investors cheered the latest quarterly results from Nvidia, fueling a rally in technology stocks. Those moves also came as US debt ceiling talks appeared to progress.
The tech-heavy Nasdaq popped 1.71 per cent to settle at 12,698.09, and the S&P 500 climbed 0.88 per cent to finish at 4,151.28. The Dow Jones Industrial Average dipped 35.27 points, or 0.11 per cent, to end at 32,764.65 and close below its 200-day moving average.
Nvidia shares surged 24.4 per cent a day after the company posted stronger-than-expected revenue guidance, and reported beats on the top and bottom lines in the recent quarter. Exploding demand for Nvidia chips used in artificial intelligence underpinned the quarterly beat.
Several analysts covering Nvidia hiked their price targets on the stock following the results. Nvidia’s surge brought the chipmaker within striking distance of a $1 trillion market capitalisation.
Other semiconductor stocks and artificial intelligence names followed Nvidia’s lead. Advanced Micro Devices and Taiwan Semiconductor soared 11.1 per cent and 12 per cent, respectively. The VanEck Semiconductor ETF popped 8.6 per cent to close at its highest level of the year; the fund hit a new 52-week high earlier in the session. Alphabet and Microsoft added 2.1 per cent and 3.9 per cent, respectively.
Elsewhere, negotiations to raise the US debt ceiling continued, with a default deadline quickly approaching. Talks between congressional leaders and President Joe Biden advanced Thursday, according to a report from Reuters, which said both parties merely need to agree on $70 billion in spending.
Uncertainty around the talks pressured equities this week, with the Dow and S&P 500 on track for weekly losses of 1.98 per cent and 0.97 per cent, respectively. The Nasdaq is up 0.32 per cent.
In commodity news, BHP Group remains optimistic about a recovery in China’s property market, expecting it to boost metals demand despite current economic indicators and anticipates improved conditions in the second half of the year, with the full impact of government stimulus measures not being felt until 2024.
In breaking news, Ford Motor just announced that it will partner with Tesla on several charging initiatives for its current and future electric vehicles in an unusual tie-up between the two rivals, CEOs of the automakers announced Thursday. The design will allow owners of the vehicles to charge at Tesla superchargers without an adapter, making Ford the first to do so.
Overall, US Sectors were mixed. On the back of the Nividia news, tech was the best performer, whilst Energy, was the worst.
Futures
The SPI futures are pointing to a 0.1 per cent fall
Currency
One Australian dollar at 7:10 AM is buying 65.10 US cents.
Commodities
Iron ore futures are pointing to a 1.1 per cent fall.
Gold lost 1.21 per cent. Silver fell 1.74 per cent. Copper gained 0.81 per cent and oil lost 3.39 per cent.
Figures around the globe
Across the Atlantic, European markets closed lower. London’s FTSE fell 0.74 per cent, Frankfurt lost 0.31 per cent while Paris closed 0.33 per cent lower.
In Asian markets, Tokyo’s Nikkei added 0.39 per cent, Hong Kong’s Hang Seng fell 1.93 per cent while China’s Shanghai Composite closed 1.93 per cent lower.
Yesterday, the Australian sharemarket closed 1.05 per cent lower at 7138.
Ex-dividends
CSR (ASX:CSR) is paying 20 cents fully franked
Ellerston Asian (ASX:EAI) is paying 8.0145 cents unfranked
Whitefield Industrials (ASX:WHF) is paying 10.25 cents fully franked
Dividends payable
OM Holdings (ASX:OMH)
HomeCo Daily Needs REIT (ASX:HDN)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.