Dow hits all-time high: Wall Street posted gains across the board on Thursday, with the Dow Jones Industrial Average hitting an all-time high, boosted by strong US economic data. However, Nvidia, a major AI chipmaker, faced a setback as its quarterly revenue forecast fell short of investors’ expectations. The Commerce Department report revealed that the US economy expanded faster than initially projected, boosted by robust consumer spending. This data reinforced optimism that the country could avoid a recession. Jeffrey Roach, chief economist at LPL Financial, noted: “Downward revisions to inflation, coupled with an upward adjustment to spending, strengthen the case for a soft landing.” Nvidia’s quarterly revenue forecast, released late on Wednesday, failed to impress, sending its shares down 3.2 percent. Despite this drop, Nvidia stock is up 144 percent so far in 2024.
AI stocks remain resilient
Interestingly, Nvidia’s stock decline did not extend to other AI-focused companies. Microsoft posted a 1.9% gain, while Alphabet (Google’s parent company) added nearly 1%. Broadcom and Advanced Micro Devices each gained around 1%. Terry Sandven, chief equity strategist at US Bank Wealth Management, commented: “It’s too early to be bearish on AI-related companies. We believe there is still significant upside potential as the AI revolution is still in its early stages.”AppleThe company’s shares rose 2.5 percent following Citigroup’s designation of the company as its top AI pick. The Dow Jones Industrial Average hit an all-time high and the S&P 500 was just below its July peak, with expectations for a possible interest rate cut in September remaining strong. The S&P 500 rose 0.76 percent to 5,634.92 points. The Nasdaq Composite Index rose 0.93 percent to 17,718.61 points, while the Dow rose 1.10 percent to 41,542.10 points. Of the S&P 500’s 11 sector indexes, nine rose, led by energy with a gain of 1.49 percent and industrials with a rise of 1.46 percent.
Unemployment benefit applications fall slightly
A Labor Department report indicated that jobless claims were slightly lower than expected for the previous week. The upcoming Personal Consumption Expenditures report for June, due out on Friday, may provide insight into future monetary policy adjustments. CrowdStrike posted a 5.3 percent increase after beating revenue expectations for the quarter, while Dollar General plunged 30% after it revised down its annual sales and profit forecasts. Advancing stocks outnumbered declining stocks in the S&P 500 by a ratio of 4.6 to 1. The S&P 500 posted 64 new highs and four new lows, while the Nasdaq posted 81 new highs and 76 new lows.(With contributions from Reuters)
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