The Dow Jones Industrial rose at closing by 1.18%, or over 450 points, and amounted to 38,612.24 points. The S&P 500 gained 2.11% at the end of the day. and amounted to 5,041.62 points. The Nasdaq Composite rose 2.96%. and closed the session at 16,041.62 points. The Russell 2000 small-cap index gained 0.95 percent to 2,013.76 points. The VIX volatility index fell by 5.41%, to 14.52 points.
Nvidia gained over 16%. at the end of the day
The technology sector rallied and drove gains in the broad market index after Nvidia on Wednesday beat Q4 earnings expectations. However, once again, the company left no doubt that the artificial intelligence boom is much more than just a stock market narrative, but probably the most important corporate project worldwide at the moment,” wrote Thomas Monteiro, senior analyst at InvestingCom, in the report.
Nvidia gained over 16%. at the end of the day. The company had $5.15 in adjusted earnings per share in the fourth quarter, while the market expected earnings per share to reach $4.64. The company’s revenues amounted to USD 22.1 billion, and analysts estimated them at USD 20.62 billion. “The market was ready to take profits after Nvidia’s results, given the sky-high expectations and deteriorating macro environment. However, once again, the company left no doubt that the artificial intelligence boom is much more than just a stock market narrative, but probably the most important corporate project worldwide at the moment,” wrote Thomas Monteiro, senior analyst at InvestingCom, in the report.
“Like Nvidia, so is the market. This supports the narrative that AI will continue to be strong for the foreseeable future. This narrative supported the markets last year, why wouldn’t it do the same this year?” – said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Shares of companies perceived as beneficiaries of the AI boom are rising
Shares of other companies perceived as beneficiaries of the AI boom are also rising. Nvidia’s rivals, Advanced Micro Devices, Super Micro Computer and Arm Holdings grew by several to a dozen percent each. Big Tech stocks like Alphabet, Microsoft, Tesla, Netflix and Meta Platforms also rose during the day.
“Both Nvidia’s actual gains and its sales prospects come from the ongoing artificial intelligence revolution that is now spreading throughout the economy. This is leading to growth in the semiconductor sector, but the gains go beyond it,” said Gilles Guibout, portfolio manager at Axa Investment Managers.
According to Bloomberg Intelligence analyst Mandeep Singh’s estimates, the global generative artificial intelligence market could reach $1.3 trillion by 2032. Rivian and Lucid dropped several percent each. after electric vehicle startups forecast 2024 production below analyst estimates amid slowing demand. Royal Caribbean rose after raising its annual earnings forecast as the company benefits from strong demand for cruises. According to LSEG data, of the 395 companies included in the S&P 500 index that published results for the fourth quarter, 80 percent exceeded analysts’ expectations.
Investors received a large portion of macroeconomic data
On Thursday, investors also received a large portion of macroeconomic data. Sales of homes on the secondary market in the US in January amounted to 4.00 million on an annual basis vs. the expected 3.97 million – the National Association of Realtors reported in a report. A month earlier, the indicator amounted to 3.88 million, after correction from 3.78 million. In month-to-month terms, the indicator increased by 3.1%. compared to -0.8 percent a month earlier, after correction from -1 percent. Expected +4.9 percent.
The PMI index, determining the economic situation in the American industrial sector, prepared by S&P Global, amounted to 51.5 points in February. vs. 50.7 points in the previous month – given in the first calculation. Analysts expected 50.7 points. The PMI composite index in the USA, prepared by S&P Global, amounted to 51.4 points in February. vs. 52 points in the previous month – given in the first calculation. Analysts expected 51.8 points. The PMI index, determining the economic situation in the American service sector, prepared by S&P Global, amounted to 51.3 points in February. vs. 52.5 points in the previous month – given in the first calculation. Analysts expected 52.3 points.
US crude oil inventories last week increased by 3.51 million barrels, or 0.8 percent, to 442.964 million barrels. Gasoline stocks fell by 293,000 during this time. barrels, or by 0.12 percent, to 247.037 million barrels. Reserves of distillate fuels, including heating oil, decreased by 4 million barrels, or 3.19 percent, to 121.651 million barrels. On the oil market, WTI futures for March are priced at USD 78.45 per barrel, up 0.69%, and April Brent futures are up 0.61%. up to USD 83.54/b.
