The Thursday session at Wall Street ended with increases in the main indexes, and S&P 500 set a new historic record for the second day in a row. Investors analyzed the quarterly results of Nvidia, which in the opinion of analysts confirmed that the boom for solutions to artificial intelligence may persist.
Dow Jones Industrial at the closure increased by 0.16 percent. and amounted to 45,636.90 points
S&P 500 at the end of the day increased by 0.32 percent and amounted to 6,501.86 points
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Nasdaq Composite increased by 0.53 percent Up to 21,705.16 points
The index of companies with medium capitalization Russell 2000 is growing by 0.19 percent. up to 2,378.41 points
The VIX index drops by 2.83 percent, to 14.43 points
NVIDIA shares fell by 0.8 percent, because the uncertainty about the company's operations in China laid a shadow on the better than expected forecasts of revenues for the next quarter.
NVIDIA expects to achieve sales of USD 54 billion in the current quarter (plus/minus 2 percent), although this number does not assume any supplies of H2O chips to China. The consensus assumed revenues at USD 53.14 billion.
“Decision [o nieuwzględnieniu sprzedaży do Chin w prognozach – przyp. PAP] It indicates how geopolitics changes the operational environment of the most important technology companies in the world, reminding investors that the dynamic development of artificial intelligence is increasingly the subject of government supervision and trade restrictions, “said Ahmad Assiri, Strategist for research in Pepperstone.
“The problem for Nvidia is not the demand for artificial intelligence, but rather how politics stood in the way of its ambitions of global dominance. The company is in an impasse. Nvidia has a technology for which countless companies are queuing in line, and yet the US trade war hinders her sales to China, everything he desires,” said Dan Coatsworth, investment analyst in Bell.
Nvidia's profit per share in the second quarter was $ 1.05 after correction compared to USD 1.01 estimated by analysts. The group's revenues reached USD 46.74 billion (year -on -year increase by 56 percent) compared to the USD 46.06 billion estimated by the market.
On Wednesday, the president of NVIDIA Jensen Huang rejected the fears of the end of the boom of expenses on artificial intelligence systems and assessed that in the next five years this market will be worth many trillion dollars.
“When you have something new and develops so quickly, and there are huge investment outlays announced by large -scale companies, it is proof that we are at an early stage of the boom for artificial intelligence,” said Thomas Martin, managing the Globalt Investments portfolio.
Mark Matthews, director of research on Asian markets at Bank Julius Baer said that the fears were also aroused by the fact that revenues from data centers in the amount of USD 41.1 billion turned out to be lower than the expectations of analysts who forecast USD 41.3 billion.
Several semiconductor market analysts were more optimistic about NVIDIA, raising their target operating prices. JPMorgan, Citi and Bernstein belong to the Wall Street companies, which currently see even greater growth potential for this chip manufacturer.
Other integrated circuit producers gained during the Thursday session. Broadcom shares increased by 3 percent, just like Micron Technology, which indicates that many investors believe that NVIDIA results gave green light to continue artificial intelligence.
Meanwhile, Snowflake shares increased by about 21 percent. After the results for the second quarter exceeded the expectations.
According to the CME Group Fedwatch tool, cash markets currently value 88.7 percent. The probability of reduction of interest rates by 25 pb. At the FED meeting on September 17, compared to 61.9 percent a month ago.
“Risk for economic prospects is more balanced. We just have to wait for the development of the situation,” said the president of the New York Federal Reserve on Wednesday, John Williams.
“The market shows a lot of confidence in the valuation of the number of interest rate reductions by the Fed. If the US labor market proves to be more resistant than expected, investors may be forced to revise their expectations regarding percent rate reductions.” – said Karen Georges, managing joint funds in Ecofi.
On Thursday, investors received a large portion of the latest macro data from the American economy.
The number of contracts for the sale of houses signed by Americans in July fell by 0.4 percent. month to month – the National Association of Realtors said.
Analysts from Wall Street expected that the number of contracts for the sale of houses would fall by 0.2 percent. The number of previously signed agreements for the sale of houses (Pending Home Sales) dropped by 0.8 percent. MDM.
The number of people applying for the unemployment benefit for the first time last week in the US amounted to 229 thousand. Economists expected that the number of new unemployed would amount to 230 thousand. towards 234 thousand Previously, after correction with 235 thousand
The number of unemployed continuing benefit was 1.954 million a week, which ended on August 16. Analysts expected 1.966 million against previously recorded 1.961 million, after a correction from 1.972 million.
The US gross domestic product in the second quarter increased by 3.3 percent. In the immersion (Saar) quarter to the quarter – the Department of Trade in the second calculation said. Initially, +3 percent were estimated.
The US GDP has fallen by 0.5 percent, and in IV quart. 2024, it increased by 2.4 percent.
Private consumption increased by 1.6 percent in Q2, compared to 0.5 percent. in the previous quarter. 1.4 percent were initially estimated.
The base PCE deflator was 2.5 percent in the second quarter of the KDK immersion, due to the initial respect of 2.5 percent. and 3.5 percent in the previous quarter. The PCE deflator is a measure of inflation preferred by the American federal reserve.
WTI oil on nymex in deliveries for October increases by 0.27 percent. up to USD 64.32 per barrel, and contracts on Brent on ICE are more expensive by 0.41 percent up to USD 68.33. (PAP Biznes)
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