Written by Bhansali Mayur Kamdar and David French
(Reuters) – The S&P 500 and Dow Jones Industrial Average held on to Friday’s gains as momentum fades from this week’s dizzying recent gains, with all three Wall Street indexes on course for weekly gains. Looked.
There was still enough power in artificial intelligence that the market valuation of Nvidia, the leading company in AI, exceeded $2 trillion for the first time.
On Thursday, the S&P 500 and Dow hit record closes, and Nvidia added $277 billion to its stock market value, marking Wall Street’s largest single-day gain ever. Expectations of an explosion boosted investor confidence in this deal.
On Friday, the chip designer’s stock rose 1.7% in early afternoon trading after volatile early trading as investors digested the previous session’s impressive gains.
Other big tech and growth stocks gave up some of their gains from the AI frenzy in the previous session. Apple fell 0.9% and Tesla fell 2%.
Shares of Super Micro Computer, another beneficiary of the AI rally, fell 12.4% after the server parts maker priced its convertible debt.
“This has been a very strong week, so it’s a situation where people are thinking about what position they want to be in when they go out for the weekend,” said Art Hogan, chief market strategist at B. Riley Wealth. Ta. Still, he expressed optimism about the outlook for Nvidia and AI stocks.
“We certainly continue to get new evidence that artificial intelligence is going to bring a lot of excitement to the stock market. Clearly they (NVIDIA) have a lot more runway in front of them. is.”
As of 1:57 p.m. ET, the Dow Jones Industrial Average was up 90.97 points, or 0.23%, at 39,160.08, and the S&P 500 was up 8.96 points, or 0.18%, at 5,095.99. The Nasdaq Composite Index fell 3 points (0.02%) to 16,038.60.
The S&P 500 and Dow appeared to be on track for another new closing high. Investors are also keeping an eye on whether the Nasdaq can surpass its all-time high set in November 2021.
Most S&P sectors are in positive territory. The highest percentage increases were in utilities, materials, and industrial stocks, which were the only laggards the previous day. All three companies rose more than 0.6%.
Carvana soared 31.3% after reporting its first-ever annual profit, backed by a deal with bondholders to reduce outstanding debt by $1 billion.
Warner Bros. Discovery fell 9.3%, reporting a better-than-expected quarterly loss as the media conglomerate grapples with the fallout from Hollywood’s twin strikes in content generation.
Jack Dorsey’s block rose 18.2% after the payments company bet on consumer resilience and forecast adjusted core profits for the current quarter that beat Wall Street expectations.
(Reporting by Amruta Khandekar and Bhansali Mayur Kamdar in Bengaluru and David French in New York; Editing by Shinjini Ganguly and David Gregorio)
