avatar
Reuters Business
0人追蹤中
Reuters Business news.
S&P, Dow eke out another high on Nvidia momentum
735 次觀看・4 小時前

STORY: The Dow and S&P 500 eked out record highs again on Friday, as artificial intelligence stocks had enough muscle to nudge the indexes higher.

The Dow gained more than a tenth of a percent, the S&P ticked up marginally while the Nasdaq shed nearly three-tenths of a percent.

AI poster child Nvidia advanced again and briefly traded above $2 trillion in market valuation for the first time.

A day earlier, Nvidia's blowout earnings propelled the AI chipmaker to add $277 billion in stock market value, Wall Street's largest ever daily gain.

And while it often helps propel other Big Tech shares, Eric Lynch, Managing Director at Scharf Investments, says investors need to separate Nvidia from other companies when it comes to AI mania.

“And what I mean by that is NVIDIA is generating massive improvements in profits and revenue year-over-year, but the rest of the IT market’s really not growing. The S&P 500’s IT sector in 2023, the aggregate revenue grew just 2%. Accenture, which is the global leading IT integrator and consultancy, basically gave guidance for the first quarter of ‘24 as only kind of flat revenue year-over-year.”

Shares of Apple, Tesla and Meta Platforms – which all gained on the back of Nvidia’s earnings – fell on Friday.

Shares of Super Micro Computer, another beneficiary of the AI rally, dropped nearly 12% after the server component maker priced its convertible notes.

Among other movers, shares of Warner Bros Discovery shed nearly 10% after reporting a bigger-than-expected quarterly loss.

Shares of Block, led by Twitter founder Jack Dorsey, jumped 16% after the payments firm forecast adjusted core earnings for the current quarter above Wall Street estimates.

And Carvana surged 32% after reporting its first-ever annual profit, helped by its pact with bondholders to cut its outstanding debt by $1 billion.