Wall Street Set to Reach New Record High on Nvidia’s Blowout Earnings
Wall Street is on the verge of reaching a new record high as Nvidia Corp. reported exceptional earnings, fueling optimism in the global artificial intelligence market. Nvidia’s shares surged over 7% in premarket trading, following a stellar performance and robust sales forecast. This has set the stage for the company to build on its impressive year-to-date rally of over 90%.
The positive momentum extended to other tech companies like Super Micro Computer Inc. and Advanced Micro Devices Inc., with futures on the Nasdaq 100 index rising by 1% and those on the S&P 500 advancing by 0.6%. Guy Miller, chief market strategist at Zurich Insurance Company Ltd., emphasized the significance of Nvidia’s earnings in the AI landscape, stating, “Top-performing companies have to deliver and Nvidia has delivered.”
The strong earnings from Nvidia underscore the increasing importance of AI, signaling continued growth in the sector. This has propelled European tech stocks like ASML Holding NV and ASM International NV, contributing to a 0.4% climb in Europe’s Stoxx 600 gauge.
Despite the release of Federal Reserve minutes confirming no immediate interest rate cuts, the market remains buoyant. US Treasuries saw a slight uptick after Wednesday’s losses, while the Bloomberg dollar index retreated from a one-week high. Investors are eagerly awaiting the weekly US data, which are expected to show a marginal decrease in unemployment claims.
In Europe, bond yields edged higher following positive PMI data indicating a year-high private-sector business activity in the euro area. However, expectations of a rate cut by the European Central Bank in June remain intact.
Mergers and acquisitions news also made headlines, with UK investment platform Hargreaves Lansdown Plc rejecting a $6 billion private equity offer, and Anglo American Plc shares rising amid talks of a potential $49 billion takeover by BHP Group. Millicom International Cellular SA also saw a surge in its Stockholm-listed depositary receipts as France’s Atlas Investissement explores a cash tender offer.
In commodity markets, oil prices inched higher, while gold and copper prices retreated from recent highs. The week ahead is packed with key events, including the G-7 finance meeting and US economic data releases.
Overall, the market sentiment remains positive, driven by Nvidia’s stellar performance and the broader optimism surrounding the AI sector. As Wall Street gears up for a potential record high, investors are closely monitoring developments in tech stocks and the broader equity markets.
