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Traders gather on the floor of the New York Stock Exchange on August 4, 2022.
Source: New York Stock Exchange
S&P 500 futures rose in overnight trading Wednesday, boosted by a jump in NVIDIA stock after the semiconductor giant posted record profits and announced a positive outlook.
S&P500 futures rose 0.7%, Nasdaq 100 futures Increased by more than 1%.futures tied to Dow Jones Industrial Average Added 42 points (0.1%).
Nvidia Shares soared 9% in after-hours trading after the company announced a massive 265% year-over-year increase in total revenue due to rapid growth in its artificial intelligence business. His Nvidia, now the fifth-largest company in the U.S. by market capitalization, also forecasts another strong revenue increase this quarter, despite growing expectations for strong growth.
Over the past year, enthusiasm for AI has propelled Nvidia, along with other Big Tech companies, into a surprising rally. The chipmaker’s blowout this quarter could further boost confidence in the sector, which has benefited the broader market.
“The bears tried to sell the news by attacking NVDA, but there’s not much to dislike about this report,” said David Russell, global head of market strategy at TradeStation. “This company has the potential for significant growth with AI investments expected over the next few years.”
of Nasdaq Composite It could be a turnaround from Thursday’s three-day losing streak. So far this week, tech stocks have fallen more than 1%.
Minutes from the previous Federal Reserve Board meeting on Wednesday showed that central bank officials were wary of cutting interest rates too soon, and that they will continue to weigh in on determining whether inflation has fallen sustainably to 2%. He emphasized the importance of “carefully evaluating” the data obtained.
“Investors should be aware that the path to defusing inflation is likely to be unstable and could lead to volatility in interest rate markets,” said Jeffrey Roach, chief economist at LPL Financial. Ta.
On Thursday, investors will focus on weekly jobless claims and existing home sales since January.
The following companies will announce their results on Thursday: moderna and Builder’s First Source in the morning, followed by live nation, Reservation held and intuition After closing.
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