S&P 500 heads to new all-time highs thanks to NVIDIA efforts
DOW JONES futures rose 0.14% to 39,725 and S&P 500 futures rose 0.59% to 5,338. NASDAQ 100 futures rose 0.94% to 18,881.
Wall Street ended yesterday’s session with a lower close after the release of minutes from the Fed’s latest meeting not only left doubts about when interest rates will be cut, but even showed that some federal officials appear willing to raise rates if necessary.
The Dow Jones fell 0.51% in its worst session in May. The S&P 500 lost 0.27% and the Nasdaq Composite fell 0.18%.
On today’s macroeconomic agenda, investors will know before the bell rings about building permits and weekly jobless claims, while early in the day investors will know the services PMI, manufacturing and sales composite data new houses.
However, the main driver of the markets today is NVIDIA, which reported growth of more than 6% in pre-open and points. above $1000 per share after reporting its first quarter results last night.
The company reported revenue for the first quarter (ended April 28, 2024) of $26 billion, up 18% from the prior quarter and up 262% from a year ago. GAAP earnings per diluted share were $5.98, up 21% from the prior quarter and up 629% from a year ago. Non-GAAP earnings per diluted share were $6.12, up 19% from the prior quarter and up 461% from a year ago. The figures beat analysts’ estimates, who had expected adjusted earnings per share of $5.65 on revenue of $24.69 billion.
NVIDIA’s fiscal second-quarter revenue forecast of about $28 billion also beats the $26.61 billion forecast. To also take into account that NVIDIA announced a 1-for-10 stock split. something that will make it easier for retail investors to buy them.
NVIDIA’s results took center stage as traders were eager for signs that enthusiasm for AI continues unabated. Moreover, with its $2.3 trillion market capitalization, NVIDIA also has significant exposure to the S&P 500.
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“For those who doubt that the growth of artificial intelligence and supply chains is fading, Nvidia’s results, tone and direction completely disprove that thesis,” Robert Alster, chief investment officer of Close Brothers Asset Management, concluded in statements compiled. Bloomberg.
Another stock that is growing strongly is Snowflake. Shares of the cloud computing company rose 5% at the open after announcing fiscal first-quarter revenue hit $829 million, above the $786 million analysts had expected. However, adjusted earnings for the period were 14 cents per share, below the consensus estimate.
Live Nation Entertainment shares fell 6% outside earnings season after BloombergNews announced that the US Department of Justice will sue the ticketing giant for violating antitrust laws.
Funds that may be on the table include Live Nation breakupsources said Bloomberg. The concert promoter merged with Ticketmaster in 2010. Earlier this month, the company reported a record first quarter, with revenue reaching $3.8 billion, up 21% from the same period a year earlier.
In commodity markets Oil prices are trying to recover after falling to a three-month low concerns about demand if the Fed delays rate cuts. Thus, US West Texas oil futures rose 0.84% to $78.23 per barrel, while the European benchmark Brent rose 0.84% to $82.60.
The euro rose 0.22% against the dollar, leaving the exchange rate at $1.0848 for each community currency.
In the fixed income segment, bond yields are trending lower today as investors continue to speculate about the Fed. The 10-year note offers a secondary market yield of 4.4257%, while the two-year note yields 4.8732%.
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