Nasdaq Holds Steady Amid Nvidia and Federal Reserve Uncertainties
The Nasdaq rose slightly in unpredictable trading, despite Nvidia's shares dropping due to trade concerns with China. Strong revenue forecasts and AI demand buffered investor fears. The S&P 500 set record highs amid expectations of a Federal Reserve interest rate cut and better-than-expected economic indicators.
The Nasdaq managed a slight uptick on Thursday amid volatile trading sessions, despite a dip in Nvidia's shares. The tech sector was bustling with uncertainty as Sino-U.S. trade confusion led Nvidia to omit potential China sales from its forecast, even after obtaining licenses to sell to the Chinese market.
Nvidia's shares fell 1.3%, but the company's positive quarterly revenue forecasts and optimism around AI helped alleviate investor concerns. The broader S&P 500 technology sector inched up by 0.2%, while the chip index saw a 0.3% increase. Commentators noted that AI enthusiasm continues to sustain Wall Street's bullish momentum.
Data analytics firm Snowflake surged with a 17.8% gain due to artificial intelligence demand, while HP Inc rose 2.4%, beating quarterly revenue estimates. Market expectations are high for a potential interest rate cut by the Federal Reserve, buoying the S&P 500 to new highs.
(With inputs from agencies.)
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