Nvidia’s stellar earnings ignite Wall Street rally amid economic uncertainties

Nvidia’s record-breaking $12.3 billion quarterly profit, helped boost Wall Street’s start amid concerns over US monetary policy

With worries over US monetary policy looming, Nvidia’s strong earnings announcement helped Wall Street get off to a positive start early on Thursday morning. Due to a spike in demand for its artificial intelligence technology, Nvidia, the top chip maker in the world, reported a record-breaking $12.3 billion quarterly profit.

In early trading after the announcement, Nvidia’s shares shot up by around 15%, from $674 to $775, showing a strong reaction from the market. A number of significant indexes showed this upward pace. The Dow Jones Industrial Average increased by 0.8% to 38,931.06 around 25 minutes into the session.

In a similar vein, the Nasdaq Composite Index rose 2.3% to 15,940.43 and the S&P 500 witnessed a 1.5% climb to 5,057.07, indicating a wider upswing in the market.

Investor interest in meetings had been muted before Nvidia’s earnings announcement since Wall Street was battling uncertainty about monetary policy. The mood of the market has lately been depressed by the shifting investor perception about prospective reductions in interest rates by the Federal Reserve.

Though not without its difficulties, Thursday’s market performance was mostly good. An announcement of staff layoffs and a cautious production estimate for its electric vehicles caused shares of Rivian, a significant player in the electric vehicle industry, to plunge by about 25%.

Furthermore, a massive service outage that affected many US consumers caused investors to become concerned and had a negative influence on the stock performance of telecom giant AT&T, which resulted in a 2.6% fall in the company’s shares.

Source: AFP