Nvidia's AI Momentum Propels Wall Street's Record Highs
Nvidia's quarterly report fell short of expectations yet confirmed strong AI infrastructure spending, driving the S&P 500 to record highs. Sino-U.S. trade uncertainties impacted Nvidia's forecast. AI demand remains a structural market driver, contributing to gains in Wall Street, as interest rate cuts are anticipated.
The S&P 500 reached a record high on Thursday as Nvidia's quarterly report confirmed the enduring strength of AI infrastructure spending, despite falling short of investors' lofty expectations.
Nvidia shares dipped nearly 1% amid Sino-U.S. trade tensions that prompted the company to exclude potential China sales from its forecast. Nonetheless, Nvidia's 56% surge in revenue reassured investors of the robust demand in AI technology, fueling record gains in AI-related stocks.
The Nasdaq and Dow Jones also rose, with notable gains in AI heavyweights like Microsoft, Meta Platforms, and Amazon. The communication services and information technology sectors led the S&P 500's rise, while the anticipation of Federal Reserve interest rate cuts added to Wall Street's optimism.
(With inputs from agencies.)
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