Nvidia (NVDA) Surges Following Strong Earnings and Positive Outlook on AI Demand
Shares of Nvidia (NVDA) surged Thursday after the software company released better-than-expected earnings results and boosted current quarter guidance. It also reported that chip demand for Artificial Intelligence (AI) applications such as ChatGPT is surging.
Nvidia (NASDAQ:NVDA) soared over 14% following the announcement, with Wall Street analysts praising the chip maker. The stock continued to gain momentum in Monday’s premarket trading, rising 0.92% to $235.01. The S&P 500 Index (SPX) also rose 0.31% to 3,982.24, while the Dow Jones Industrial Average (DJIA) gained 0.22% to 32,889.09.
The market was also focusing on the U.S. core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation. The average prediction of economists is that the Core PCE Price Index will be +0.4% monthly and +4.3% yearly in January, compared to the prior figures of +0.3% m/m and +4.4% y/y.
Meanwhile, the University of Michigan’s consumer sentiment index rose to a 13-month high of 67.0 in February, while the Commerce Department’s durable goods orders report showed a 4% drop in January, more than the expected 4.0% fall.
The Commerce Department also reported that personal spending jumped +1.8% m/m in January compared to expectations of +1.3% m/m.
The Commerce Department is scheduled to release the durable goods orders report for January at 8:30 a.m.  The average expectation among economists is that durable goods orders will drop by 4% in January, undoing most of the 5.6% rise that occurred in December. After declining by 0.2% in December, core durable goods orders (excluding volatile transportation orders) may have increased by 0.1%.
On Monday, the 10-year yield increased to 3.97%. The number of initial unemployment claims in the United States unexpectedly decreased by 3,000 to 192,000 in the last week, which demonstrates a more robust labor market than anticipated, as analysts had predicted an increase to 200,000.
As the trading day neared its end, the tech-dominated Nasdaq Composite (COMP) was in focus.
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1. “Nasdaq, S&P, Dow rebound after suffering their worst weekly loss in 2023” msnNOW, 27 Feb. 2023, https://www.msn.com/en-us/money/markets/nasdaq-sandp-dow-rebound-after-suffering-their-worst-weekly-loss-in-2023/ar-AA17ZLQs
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