The S&P 500 and the Dow Jones Industrial Average ended at their highest closing levels ever after hitting intraday highs during the trading session as part of a broad-based rally of tech shares
U.S. stocks rose on Thursday a day after AI chip designer Nvidia posted very strong results and issued an upbeat outlook.
The S&P 500 and the Dow Jones Industrial Average (DJIA) ended at their highest closing levels ever after hitting intraday highs during the trading session as part of a broad-based rally of tech shares.
The Dow closed the day 1.2% higher, the S&P jumped 2.1% and the Nasdaq soared nearly 3%.
For the S&P and the Nasdaq, it was their biggest one-day percentage gain in over a year.
Nvidia climbed 16% after it forecast a nearly three-fold jump in first-quarter revenue on strong demand for its AI chips and beat expectations for Q4 revenue.
The company’s earnings were a major test for the AI-driven rally on Wall Street which Baird Investment Strategy Analyst Ross Mayfield said he thinks still has legs.
How long can the artificial intelligence trend or the momentum behind that theme go for it? You know, I am not sure, but I think the right answer is longer than people would expect, he said.
At a bare minimum, the firms at the top of the market today and the ones that are levered to big tech and consumer tech and artificial intelligence are primarily big earners as well. And there is a real, you know, fundamental base case for them. Now you can make an argument based on valuation. But with themes like this and enthusiasm like this, valuation can kind of get thrown out the window for short term time periods, he added.
Elsewhere, vaccine maker Moderna surged around 14% after surprising investors with a Q4 profit.
But electric car makers Rivian and Lucid dropped after forecasting production below expectations.
