AI Momentum Bolsters Wall Street Despite Nvidia's Shortfall

The S&P 500 closed at a record high Thursday despite Nvidia falling short of investor expectations. Nvidia's dip followed trade uncertainties with China. Still, a 56% surge in their revenue bolstered confidence in AI, further lifting stocks such as Microsoft and Amazon.

Market expert Ross Mayfield, from Baird, emphasized Nvidia's standout performance amid unrealistic expectations, affirming AI's role as a key market driver. The S&P 500, Nasdaq Composite, and Dow Jones all showed gains. Meanwhile, Nike's stock fluctuated amid a slight corporate workforce reduction.

The possibility of a Federal Reserve interest rate cut and a lower-than-expected weekly jobless claims report fueled optimism for economic growth. Additionally, Snowflake's ascent reflected ongoing AI demand, while HP Inc's earnings exceeded forecasts. However, Hormel Foods faced challenges with a less favorable profit outlook.

(With inputs from agencies.)