The S&P 500 and Nasdaq hit intraday highs Thursday on optimism that there is still room for AI to rise after Nvidia’s (NVDA) blockbuster earnings.
The tech-heavy Nasdaq Composite Index (^IXIC) rose about 1%, and the S&P 500 (^GSPC) rose 0.6%. The tech-heavy Dow Jones Industrial Average (^DJI) rose 0.1%.
Shares of AI pioneer Nvidia rose 8% to above $1,000 for the first time after the company reported first-quarter profits that far surpassed Wall Street expectations. The semiconductor giant also raised its guidance, easing concerns that AI demand was losing momentum.
Other chip and AI stocks also rose following their earnings reports, with server makers Dell (DELL) and Supermicro Computer (SCMI) rising about 6% and 5%, respectively.
Nvidia’s euphoria helped the market dispel concerns about a rate hike that had caused the previous day’s decline. Stocks slumped after the Federal Reserve’s minutes revealed that some policymakers are willing to keep interest rates up this year for a long time if inflation does not cool down as expected. It fell.
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May manufacturing and services PMI data, due later Thursday, should give investors further insight into how the economy is holding up in the face of the Fed’s efforts to curb price pressures.
Meanwhile, expectations for AI have provided a tailwind for companies. Shares of cloud-based analytics company Snowflake (SNOW) rose 4% on positive sales outlook. Meanwhile, News Corp. (NWS) shares rose after the media giant signed a deal with Microsoft-backed OpenAI, giving ChatGPT access to content from the likes of the Wall Street Journal.
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