The S&P 500 and Nasdaq Composite rose on Thursday as investors cheered Nvidia’s latest quarterly results. Meanwhile, the Dow Jones Industrial Average fell after Fitch Ratings placed the US’ triple-A rating on rating watch negative.
this S&P 500 Index up 0.6%, Nasdaq rose 1.5%.this Dow It traded down 106 points, or 0.3%.
Nvidia Shares soared 25% after the artificial intelligence beneficiary gave stronger-than-expected fiscal second-quarter revenue guidance, while also reporting top and bottom-line profits for the previous quarter. Several analysts covering the stock raised their price targets on the stock following the results.
Other semiconductor stocks followed Nvidia higher, including AMD and TSMC, each up about 9%.this VanEck Semiconductor ETF (SMH) A surge of 6.7%.
“The macro view is that technological innovation can offset the headwinds from a slowing economy or rising interest rates,” said Dylan Kremer, co-chief investment officer at Certuity. “Tech and growth stocks, in particular, aren’t dead.”
Nvidia Stock 1-Day
At the same time, Fitch assigned the US AAA long-term foreign currency issuer default rating passive observation. The rating agency said ongoing debt ceiling negotiations have increased the risk that the government may not be able to repay some of its debt. However, Fitch said it still hopes to reach a resolution by X-date.
“I think everyone is watching the Nvidia story and following it because it’s a welcome break from debt ceiling talks, banking concerns and inflation and Fed tightening,” said Ed Moya, senior market analyst at Oanda.
Debt ceiling talks continued to weigh on major stock indexes. Negotiations hit a roadblock early Wednesday. On Thursday, House Speaker Kevin McCarthy said talks were making progress, but major obstacles remained to cementing an agreement.
The Commerce Department’s revision on Thursday showed stronger economic growth than previously expected. From January to March, US gross domestic product grew at an annualized rate of 1.3%, 0.2 percentage points higher than the previous estimate. Data on pending home sales for April was also released after the market opened. Economists polled by Dow Jones expected a 0.8% increase, up from a 5.2% decline the previous month.
— CNBC’s Christina Wilkie contributed to this story.