NVIDIA Corp (NVDA) Surges 14.02% as Market Awaits Fed Rate Hike Decision

Shares of NVIDIA Corp. (NASDAQ: NVDA) surged 14.02% to $236.64 on Thursday, extending a two-day rally.[0] The stock market was broadly higher, with the S&P 500 Index (SPX) and the Dow Jones Industrial Average (DJIA) advancing 0.53% and 0.33%, respectively.[1] NVIDIA Corp. is currently trading $52.82 below its 52-week high ($289.46), which the company reached on March 29th.[1]

The rally was driven by strong fourth-quarter earnings results and an improved outlook. The chip giant also announced its own AI cloud service, which is being carried by cloud service providers like Microsoft, Alphabet, and Oracle. This will help companies that don’t have the technical expertise to build their own infrastructure.[2]

The Labor Department’s initial unemployment claims posted a surprise drop to 192,000 versus an expected 200,000.[3] Minutes from the Federal Reserve’s February 1 meeting noted that “recent reductions (in jobless claims) did not appear to reflect widespread weakness in the demand for labor.”[4] Gross domestic product for the fourth quarter was revised to 2.7%, slightly lower than the estimated 2.9%.[5] The 10-year Treasury yield rose 3 basis points to 3.95%, back at 2023 highs.[6]

Crude oil rose over 1% to $75.04 per barrel, while the yield on the 10-year Treasury note fell 3 basis points to 3.89%.[7] The Dow Jones Industrial Average fell 0.3%, and the S&P 500 lost 0.2%.[8] The Nasdaq increased by 0.1%, thereby ending its three-day decline.[9]

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It is anticipated by the market that the Federal Reserve will increase rates by a quarter of a percentage point in March, followed by another rise in May.[10] It is predicted that a rate increase will occur in June, pushing the rate above 5% by the middle of summer.[10]

Dow Jones consensus estimates predict that personal income rose 1.2% last month.[11] The prior month saw an increase of 0.2%, which is up from that.[11] It is predicted that consumer spending will increase by 1.4% in January, which is higher than the 0.2% drop in the previous month.[11]

The spotlight will be on the U.S. on Friday.[12]

0. “Here’s Why Nvidia Stock Surged Today” The Motley Fool, 23 Feb. 2023, https://www.fool.com/investing/2023/02/23/heres-why-nvidia-stock-surged-today/

1. “NVIDIA Corp. stock rises Thursday, outperforms market” MarketWatch, 23 Feb. 2023, https://www.marketwatch.com/data-news/nvidia-corp-stock-rises-thursday-outperforms-market-c6a494cd-166b8b828e78

2. “Nvidia Gains After AI Computing Demand Helps Lift Forecast” Yahoo! Voices, 23 Feb. 2023, https://www.yahoo.com/now/nvidia-gives-strong-forecast-ai-215407833.html

3. “Stock Market Today: Nasdaq Outperforms as Nvidia Outlook Impresses” Kiplinger’s Personal Finance, 23 Feb. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-022323-nasdaq-outperforms-as-nvidia-outlook-impresses

4. “Dow Jones Slips; Nvidia Explosive Volume Lifts AMD And Chip Leaders; Microsoft Debuts AI Apps” Investor’s Business Daily, 23 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-fades-nvidia-explosive-upside-volume-microsofts-ai-app/

5. “U.S. stocks wobble as rate fears outweigh strong earnings By Investing.com” Investing.com, 23 Feb. 2023, https://www.investing.com/news/stock-market-news/us-stocks-are-rising-after-nvidias-upbeat-outlook-3012553

6. “Stock market news today: S&P 500 ends slump after volatile session” Markets Insider, 23 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-sp500-ends-losing-streak-gdp-revision-2023-2

7. “Dow futures rise 85 pts; bullish Nvidia guidance boosts sentiment By Investing.com” Investing.com, 23 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-rise-85-pts-bullish-nvidia-guidance-boosts-sentiment-3011926

8. “Dow Jones Futures Rise: S&P 500 Nears Key Support As Nvidia Earnings Loom; Here’s What To Do Now | Investor’s …” Investor’s Business Daily, 22 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-tumbles-sp-nears-key-support-nvidia-earnings/

9. “Dow Jones Rises After Key Economic Data; Nvidia Surges On Earnings, Lucid Crashes On Sales Miss” Investor’s Business Daily, 23 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-rise-ahead-of-key-economic-data-nvidia-surges-on-earnings-but-lucid-plunges/

10. “Bears Have the Edge as the Market Awaits More Inflation Data” RealMoney, 23 Feb. 2023, https://realmoney.thestreet.com/markets/bears-have-the-edge-as-the-market-awaits-more-inflation-data-16116648

11. “Stock futures slip as investors await key inflation and consumer data: Live updates” CNBC, 23 Feb. 2023, https://www.cnbc.com/2023/02/23/stock-market-today-live-updates.html

12. “S&P 500 snaps 4-day losing streak as stocks end choppy session higher” msnNOW, 23 Feb. 2023, https://www.msn.com/en-us/money/markets/sandp-500-snaps-4-day-losing-streak-as-stocks-end-choppy-session-higher/ar-AA17PVqK