The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange ended in the green on Wednesday, helped by a decline in bond rates and driven by expectations for quarterly accounts from Nvidia, emblem of investors’ enthusiasm for the promises of the artificial intelligence sector (AI ).
The Nasdaq gained momentum by climbing 1.59% to 13,721.03 points. The Dow Jones index advanced 0.54% to 34,472.98 points and the S&P 500 gained 1.10% to 4,436.01 points.
The spotlight was shone throughout the session on Nvidia (+3.17% to 471.16 dollars), the darling of the artificial intelligence sector, which announced staggering results after the closing bell.
The specialist in graphics cards and highly sought-after AI chips (GPUs) posted a stronger-than-expected jump in revenue to $13.5 billion and a profit of $6.2 billion from 4 .8 billion expected.
The title soared 7.95% in electronic trading after the close.
Fourth in market capitalization on Wall Street, the Nvidia share is the best performer of the year (+200% since the start of the year).
“Expectations were very high for Nvidia. If the stock goes up, it will be very bullish for the whole AI sector,” promises Adam Sarhan of 50 Park Investments.
For Jose Torres of Interactive Brokers, Nvidia has the potential to “boost optimism on the AI front and provide market support.”
“The strong performance of the S&P 500 this year has been fueled by the promise of AI,” Cresset Capital’s Jack Ablin said in a note, noting that the debates and media coverage have added to the enthusiasm of investors. investors for tech mega-caps.
Beyond the frenzy around Nvidia, a sharp drop in bond rates also favored a comeback in equities.
Yields on 10-year Treasury bills slipped to 4.19% around 8:30 p.m. GMT after hitting 4.32% on Tuesday, near 16-year highs hit in the past week.
Yields fell due to the disappointing Flash PMI activity indices for Great Britain and the euro zone – in contraction – and the United States, which was virtually stagnant. US activity slowed to 50.4 points in August from 52 in July.
Falling bond yields helped equities, especially tech stocks.
For Patrick O’Hare of Briefing.com, the fall in Treasury bond rates has “created a bit of an opportunity to buy on the downside”, he told AFP.
Elsewhere on the stock exchange, tech big names led the Nasdaq, such as Intel which closed above 3%, Apple, Alphabet and Meta above 2%. Other AI-related stocks like data company Palantir (+4.36%) took advantage of the momentum.
The consumer retail sector had a bad day, with shares of Foot Locker slumping (-28%) after falling sales and lower annual sales forecasts.
Connected bike and treadmill specialist Peloton fell 22.60% to a record low for the title.
From Thursday, attention will turn to the meeting of central bankers in Jackson Hole (Wyoming). Jerome Powell, Chairman of the Fed, delivers a speech there Friday at 2:00 p.m. GMT.
© 2023 AFP
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