US Stocks Close Higher After Nvidia Earnings
NEW YORK, Nov 22 (Bernama-Xinhua) -- US stocks ended higher on Thursday as investors absorbed Nvidia's latest earnings and monitored key economic data, reported Xinhua.
The Dow Jones Industrial Average rose 461.88 points, or 1.06 per cent, to 43,870.35. The S&P 500 added 31.60 points, or 0.53 per cent, to 5,948.71. The Nasdaq Composite Index increased 6.28 points, or 0.03 per cent, to 18,972.42.
Nine of the 11 primary S&P 500 sectors ended in green, with utilities and financials leading the gainers by adding 1.75 per cent and 1.27 per cent, respectively. Meanwhile, communication services and consumer discretionary led the laggards by losing 1.73 per cent and 0.30 per cent, respectively.
Nvidia reported another strong quarter, exceeding profit expectations. Nvidia was up 0.53 per cent on Thursday. However, the company projected its slowest revenue growth in seven quarters, citing ongoing supply chain challenges. The report tempered some of the enthusiasm surrounding the chipmaker, a key driver of this year's market rally.
Wedbush's Dan Ives called the results "flawless" and said Nvidia's earnings release "should be framed and hung in the Louvre" in a note to investors on Thursday.
"We believe the path to US$4 trillion market cap and beyond is now laid out by Nvidia and this is bullish for the broader tech rally into year-end and 2025."
On the economic front, the US weekly jobless claims dropped to 213,000 for the week ending November 16, down from 219,000 the prior week and below the 220,000 forecast by economists. The data highlighted continued strength in the US labour market.
"After being boosted by the Boeing strike and Hurricanes Helene and Milton, claims have returned to a level consistent with limited layoffs," Oxford Economics lead US economist Nancy Vanden Houten wrote on Thursday.
Traders reassessed the Federal Reserve's stance on interest rates. Market expectations for the Fed to maintain current rates at its December meeting climbed to 44 per cent, up from 28 per cent just a week ago, according to the CME FedWatch Tool, as investors weighed the central bank's response to mixed economic signals.
Thursday saw notable gains in the financial and industrial sectors, with stocks like Goldman Sachs, Caterpillar, and Home Depot leading the charge. Small-cap stocks also performed well, as the Russell 2000 Index, often seen as a gauge for smaller companies poised to benefit from economic growth, rose more than 1.7 per cent.
However, the tech sector faced headwinds. Amazon dropped 2.22 per cent, and Meta Platforms slid 0.43 per cent. Alphabet extended its decline for a second session, losing 4.74 per cent as concerns over antitrust issues weighed on the stock.
-- BERNAMA-XINHUA
