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Wall Street ended higher, with the S&P 500 and Nasdaq reaching historic highs throughout the session and their highest closing value ever.
The main Wall Street indices closed higher this Thursday, leaving behind the mixed sessions of the last few days. The positive results and prospects of Nvidia, which presented accounts yesterday after the close of the session, were supporting the gains.
The S&P 500, a reference for the region, added 2.11% to 5,094.39 points – the highest closing value ever – after reaching historic highs of 5,094.39 points throughout trading.
In turn, the industrial Dow Jones gained 1.18% to 39,069.11 points, closing above the 39 thousand points threshold for the first time in its history and reaching 39,149.61 points in the session.
The technological Nasdaq Composite jumped 2.96% to
16,041.62 points.
Nvidia soared 16.4% to $785.38 – a new all-time high. In the fourth quarter of the last fiscal year, ended on January 28, revenues amounted to US$22.1 billion, a growth of 22% compared to the previous three months and 265% year-on-year. This value was higher than expected by analysts, who pointed to 20.41 billion.
“The world is moving at Nvidia’s whim,” Jack Janasiewicz, a strategist at Natixis, told jokingly.
“What we are seeing is a perfect storm of a pioneering company, combined with an 80% market share and growth prospects in an area that can potentially transform not only the technology sector but also the functioning of many industries,” he added. Gerald B. Goldberg, CEO of GYL Financial Synergies, told CNBC.
Riding on strong demand for “chips” in the current fiscal quarter, the technology company says it expects revenues of US$24 billion, above the US$21.9 billion estimated, on average, by analysts.
Other listed companies seen as beneficiaries of the dynamism surrounding artificial intelligence also increased in value. AMD rose 10.69%, Super Micro Computer grew 32.87% and Arm Holdings advanced 4.17%.
Investors also evaluated the numbers of unemployment benefit claims in the United States, which last week fell again more than expected, showing continued robustness in the labor market.
This Wednesday, the minutes of the Federal Reserve’s January meeting were also released, in which the central bank chose to leave interest rates unchanged. Most Fed officials warned at that meeting of the risks of cutting benchmark interest rates too soon, which outweigh those of keeping interest rates high for too long.
The minutes also show that Fed decision-makers are keeping an eye on the path of inflation and some members have expressed concern that progress in combating high inflation could stagnate. The “uncertainty” about when the first interest rate cuts should begin was also evident.
The message was in line with what has been understood by the market. Traders are now pointing out that the first reduction in policy rates will only take place from June onwards. At the beginning of the year, forecasts indicated May as the decisive month.
