The S&P 500 and Nasdaq hit new intraday records on Thursday after Nvidia’s ( NVDA ) blockbuster earnings stoked optimism that the AI rally has more room to run.
The tech-heavy Nasdaq Composite (^IXIC) rose as much as 1%, while the S&P 500 (^GSPC) rose 0.6%. The Dow Jones Industrial Average (^DJI), which includes fewer technology stocks, fell 0.3%.
Nvidia shares rose more than 8% to above $1,000 for the first time after the AI clock blew past Wall Street’s sky-high forecasts for first-quarter earnings. The chip giant also raised its expectations, allaying fears that demand for AI would lose steam.
Other chipmakers and AI-related stocks rose higher after the results, with server makers Dell (DELL) and Super Micro Computer (SCMI) up about 6% and 5%, respectively.
The euphoria at Nvidia helped the market put aside concerns about rate hikes that fueled the previous day’s losses. Stocks fell after Federal Reserve minutes showed some policymakers are willing to keep interest rates high for longer this year if inflation doesn’t cool as expected.
Read more: What influence does the labor market have on inflation?
The release of May PMI data for the manufacturing and services sectors later on Thursday should give investors more insight into how the economy is holding up in light of the Fed’s efforts to quell price pressures.
Elsewhere, hopes for AI gave companies a boost. Shares of cloud-based analytics company Snowflake (SNOW) added 4% on upbeat sales prospects. Meanwhile, News Corp. (NWS) a boost after the media giant signed a deal with Microsoft-backed OpenAI that would give ChatGPT access to content from The Wall Street Journal and other titles.
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