Wall Street today: US stocks edge higher, Nasdaq jumps 1% after Nvidia’s upbeat earnings

Nvidia, the world’s third-most valuable firm on Wednesday reported a net profit of $14.9 billion and revenue of $26 billion, almost four times as compared with the same fiscal quarter last year.

The chipmaker also announced stock split a 10-for-one on Wednesday and lifted its quarterly dividend by 150% as demand continues to exceed supply for its high-end chips. 

ALSO READ: Nvidia profits soar over 600%, revenues above 200% as shares top $1,000

According to Reuters, Nvidia CEO Jensen Huang said that he expected new AI models that are capable of creating video and engaging in human-like voice interactions to spur more orders for Nvidia’s processors.

Nvidia earnings also lifted other chip stocks higher. AMD rose 1.2% and Super Micro Computer soared 5.7%.

Media giant News Corp. shares also rose 2.2% after it unveiled a deal to bring its content from The Wall Street Journal, New York Post and other news businesses to OpenAI.

US stock markets

After opening higher, US stocks were mixed on Thursday due to the US Federal Reserve’s monetary policy caution.

ALSO READ: US Fed minutes show officials rally around higher-for-longer rates

Minutes of the Federal Reserve’s latest monetary policy meeting released on Wednesday showed that the Fed officials coalesced around a desire to hold interest rates higher for longer.

And many Fed officials are also doubtful about whether policy was restrictive enough to bring inflation down to their target.

At 10:00 a.m. ET, the Dow Jones Industrial Average was down 221.43 points, or 0.56%, at 39,449.61, the S&P 500 was up 3.90 points, or 0.07%, at 5,310.91, and the Nasdaq Composite was up 82.81 points, or 0.49%, at 16,884.35. 

At the opening bell, the Dow Jones Industrial Average rose 23.91 points, or 0.06%, to 39,694.95. The S&P 500 was higher by 33.25 points, or 0.63%, at 5,340.26, while the Nasdaq Composite gained 194.84 points, or 1.16%, to 16,996.39.

The yield on the 10-year Treasury rose to 4.47% from 4.43% late on Wednesday. The 2-year yield climbed to 4.92% from 4.87%.

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Published: 23 May 2024, 07:31 PM IST