The Dow Jones Industrial Average opened up 428.7 points, or 0.93%, at 46,567.51. The S&P 500 rose 95.8 points, or 1.44%, to 6737.93 at the opening bell, while the Nasdaq Composite rose 492.8 points, or 2.18%, to 23057.001.
The market’s focus remained on Nvidia as Wall Street’s most influential stock jumped 5.1 percent overnight after the chipmaker reported third-quarter earnings of USD31.9 billion. That’s a 65 percent increase from last year and more than analysts expected.
The Santa Clara, California-based company also forecast revenue of about USD65 billion in the current quarter covering November-January, about USD3 billion above analysts’ estimates, signaling that demand for its AI chips will remain feverish.
Nvidia is the most valuable company by market capitalization on Wall Street, soon topping USD5 trillion in value. That means its movements affect the S&P 500 more than any other stock, and can single-handedly drive the index’s direction for days.
While continuing to deliver big profits for investors, Nvidia has largely silenced recent criticism that its shares have shot too high, too fast.
Nvidia has become a bellwether for the wider frenzy surrounding artificial-intelligence technology, as other companies are using its chips to advance their AI efforts.
Walmart also reported its latest quarterly results on Thursday. The Arkansas retailer delivered another standout quarter, posting strong sales and profits that blew past Wall Street expectations as it continues to lure cash from Americans who have become increasingly anxious about the economy and prices.
As other retailers dial down forecasts, the nation’s largest retailer raised its financial outlook Thursday after a strong third quarter, setting itself up for a strong holiday shopping season.
Traders also made their final moves ahead of the upcoming September jobs report from the US government on Thursday. Labor market data, usually released during the first week of each month, was delayed due to the six-week federal government shutdown.
The Labor Department said Wednesday it would not release the full jobs report for October because the 43-day shutdown meant it could not calculate the unemployment rate and some other key numbers.
The job market has been so sluggish this year that the Fed has already cut its key interest rate twice. Lower rates could boost the economy and prices for investment, and more cuts were expected on Wall Street, including at the Fed’s next meeting in December.
But some Fed officials are signaling they should pause next month, as inflation remains stubbornly above the Fed’s 2 percent target. Low interest rates can make inflation worse.
As a trusted and reliable news source
Add now!
(You can now subscribe to our ETMarkets WhatsApp channel)
