Technology stocks rallied Thursday on a blockbuster outlook from Nvidia Corp. lifting key equity indexes, while every other sector in the US stock market fell.
The S&P 500 Index ended the session 0.7% higher. Salesforce Inc. was the top performer, climbing by 23% on a strong revenue outlook and a deepened partnership with Anthropic PBC. Meanwhile, the equal-weight version of the benchmark declined 0.3%, a reflection of the number of stocks falling despite tech's strength.
The tech-heavy Nasdaq 100 Index closed up 1.4%, while the blue-chip Dow Jones Industrial Average rose 0.2%.
ALSO READ: Asian Stock Markets Today: Nikkei Rises As Investors Await Fed Chair Warsh's Speech
"As is usually the case when tech ramps, the group is sucking oxygen from the rest of the market," Vital Knowledge founder Adam Crisafulli wrote. He added the "accelerating AI boom is creating upside risk for yields."
| Nvidia's guidance for 70% revenue growth in its fiscal 2028 year has it leading gains among large-cap tech names in Thursday trading. Shares rose 8.7%, which added about $440 billion to the chipmaker's market value. "Demand for accelerated computing remains feverish. These growth rates are extraordinary, completely unprecedented at this scale," said Jed Ellerbroek, portfolio manager at Argent Capital Management. The outlook helped boost artificial intelligence-linked stocks, including memory and storage names, chip equipment and optical names like Applied Optoelectronics Inc. "The market is so dominated by this AI theme," Stephanie Guild, chief investment officer at Robinhood Markets, said in an interview with Bloomberg TV. She added that investors are looking for free cash flow because she does not expect interest rates to fall "anytime soon." Traders assessed additional clues on the Federal Reserve's potential interest-rate path this morning, including a drop in US jobless clams and rising wholesale inventories. Meanwhile, the US merchandise trade deficit widened in July to the largest since early last year. Fed Chairman Kevin Warsh's speech at a symposium in Jackson Hole, Wyoming, will also provide more details on the central bank's view of the inflation outlook. Speaking to Bloomberg on the sidelines of the conference, Kansas City Fed President Jeffrey Schmid said current monetary policy is not restricting the US economy. Chicago Fed President Austan Goolsbee said that at present, three-month inflation "doesn't look terrible." Among single-stock movers, HP Inc. shares fell 2.9% on investor concerns about the future demand for personal computers and printers. ALSO READ: Oil Prices On August 28: Brent Crude Slips Below $88 As Hormuz Uncertainty, Russia Risks Weigh Sectors in Focus
|
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
