U.S. Markets Rally on Robust Economic Data, Shrugging Off Nvidia's Decline
US Markets Rise on Strong Economic Data, Shrugging Off Nvidia Disappointment
U.S. stock indexes climbed on Thursday as investors focused on encouraging economic data, overshadowing a post-earnings slump in Nvidia shares. The S&P 500 rose 0.3% to 5,608.32, while the Dow Jones Industrial Average edged up 0.1% to 41,101.97. The tech-heavy Nasdaq Composite saw the most significant gains, advancing 0.8% to 17,695.35.
The positive market sentiment was fueled by revised U.S. GDP figures, which showed slightly stronger growth in the second quarter than initially reported. Additionally, jobless claims data remained relatively stable compared to the previous week, further bolstering confidence in the economy’s resilience.
These upbeat economic indicators helped offset the impact of Nvidia’s earnings report, which, despite beating expectations across the board, was viewed as a disappointment by investors with high expectations. Nvidia’s shares fell approximately 2% shortly after the market opened, marking the company’s narrowest earnings beat in the past six quarters.
The lukewarm reception to Nvidia’s results highlights growing concerns about the timeline for returns on massive AI investments, with projections suggesting up to $1 trillion could be poured into the sector in the coming years. The chipmaker’s earnings also revealed challenges related to increasingly complex products, potentially dampening investor enthusiasm.
In other market news, U.S. home prices reached another record high in June, even as the housing market grapples with slowing sales volumes and construction. Meanwhile, Trump Media’s stock continued its downward trajectory, falling below $20 for the first time since going public, as Vice President Kamala Harris’s increased prominence reshuffled election odds.
Commodities saw mixed performance, with oil futures rising. WTI crude increased 1.53% to $75.62 a barrel, while Brent crude climbed 1.18% to $79.58 a barrel. Gold also saw modest gains, up 0.22% to $2,543 per ounce.
In the bond market, the 10-year Treasury yield dipped two basis points to 3.863%. Cryptocurrency markets showed strength, with Bitcoin rising 2.3% to $60,374.24.
As the November election approaches, a report from Ned Davis Research suggests that the stock market may benefit regardless of the outcome, providing a potential silver lining for investors amid ongoing political uncertainty.
