Nvidia Propels US market to record closing highs

The US share market finished session higher on Thursday, 22 February 2024, with the S&P500 and Dow Jones Industrial Average both surging to record closing highs, as Nvidia robust earnings and bullish outlook rekindled the artificial-intelligence mania.

At closing bell, the Dow Jones Industrial Average index surged 456.87 points, or 1.18%, to 39,069.11. The S&P500 index skyrocketed 105.23 points, or 2.11%, to 5,087.03. The tech-heavy Nasdaq Composite index was up 460.75 points, or 2.96%, to 16,041.62.

All but one of the 11 major S&P 500 sectors rose, with technology sector leading gains with a 4.35% increase. The outlier was utilities sector, which slipped 0.77%

 

Shares of Technology Companies outperformed the market, with Nvidias leading rally, up 16.4%, adding $277 billion to market capitalization, after the chipmaker forecast a roughly three-fold surge in first quarter revenue on strong demand for its artificial intelligence (AI) chips. The chipmaker reported a five-fold jump in AI and cloud revenue, and net income of more than $12 billion.

Advanced Micro Devices, a fierce Nvidia competitor, rose 10.7% on a wave of AI enthusiasm. Big tech rode the AI wave higher, with Meta gaining 3.9% and Amazon adding 3.6%. Salesforce was up 3.6%. International Business Machines rose 2.5% and Microsoft added 2.4%.

In economic news, a report released by the Labor Department showed initial jobless claims fell to 201,000, a decrease of 12,000 from the previous week's revised level of 213,000.

Powered by Capital Market - Live News