Stock market on Thursday bolstered by AI profits
A giant financial forecast from one of Wall Street’s most influential stocks helped to support the market Thursday as worries worsened about political rancor in Washington, according to the Associated Press.
The S&P 500 was 0.4% higher in early trading after chipmaker Nvidia reported stronger profit and revenue than expected for the latest quarter, benefiting from the tech world’s rush into artificial intelligence. It helped the Nasdaq composite leap 1.3%, as of 9:40 a.m., while the Dow Jones Industrial Average was down 111 points, or 0.3%, at 32,688.
Because it’s one of Wall Street’s most valuable stocks, Nvidia’s 22.5% surge was the strongest force pushing upward on the S&P 500. Its forecast of roughly $11 billion in revenue for the current quarter far exceeded analysts’ expectations for less than $7.2 billion. Nvidia’s stock has already more than doubled this year.
Stocks of other chip makers also charged higher. Advanced Micro Devices gained 7.7%.
Big Tech stocks rallied further, adding to recent gains fueled by excitement about AI. Google’s parent company, Alphabet, rose 2.5%, while Microsoft gained 2.5%.
They helped solidify the market despite worries about the U.S. government edging closer to a possible default on its debt. Washington could run out of cash to pay its bills as soon as June 1, unless Congress allows it to borrow more.