Nvidia, the chip company that has emerged as a dominant force in artificial intelligence technology, saw its stock rise by 3.4% on Thursday, leading to overall gains in US stock indices. The S&P 500 reached a record high for the 31st time this year, while the Nasdaq Composite also hit a new record. Despite positive performance in the stock market, there were mixed reports on the economy.
The Dow Jones Industrial Average was down slightly, as high interest rates aimed at curbing inflation have negatively impacted sectors like housing and manufacturing. This has led to struggles for low-income households as prices continue to rise. Companies like Winnebago Industries are trying to attract customers with affordable offerings, but have fallen short of earnings expectations.
On the other hand, companies like Accenture, which focus on artificial intelligence services, have seen their stock rise even after reporting weaker-than-expected earnings. Accenture highlighted its success in generating new bookings for AI projects, totaling over $2 billion in the past three quarters. This demonstrates the high demand for AI technology across various industries.
Despite mixed economic reports, there is hope on Wall Street for a potential slowdown in the US economy, which could help alleviate inflationary pressures. Investors are anticipating a possible interest rate cut by the Federal Reserve later this year, which could stimulate investment and boost stock prices. Other central banks, like the Swiss National Bank, have already taken steps to lower interest rates, while the Bank of England has maintained its current rate.
Stock indices in Europe and Asia experienced varied performance in response to the economic news. Overall, Nvidia’s continued success in the AI sector has contributed to the overall positive momentum in the stock market, despite challenges in the broader economy.
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