US stocks climbed on Thursday following Nvidia’s impressive first-quarter earnings report, which exceeded revenue and profit estimates and included a 10-for-1 stock split announcement. The chipmaker, known for its AI-focused technology, reported $26.04 billion in revenue and earnings per share of $6.12, outperforming analyst expectations. The company also provided a strong outlook for the current quarter, citing robust demand for its chips. Nvidia’s stock surged 7% in early trading, reaching a new high of around $1,017 per share.
Investors were also awaiting comments from Atlanta Federal Reserve President Raphael Bostic later in the day. The Federal Reserve has been closely monitoring economic data and inflation trends, with many officials expressing caution about the need for rate cuts until price pressures subside. Wednesday’s market decline was attributed to concerns raised in the Federal Reserve’s meeting minutes, which hinted at a hawkish stance on monetary policy. However, some analysts noted that the minutes preceded the release of a more positive inflation report for April.
In terms of market performance, key US indices were up shortly after the opening bell on Thursday. In the commodities sector, West Texas Intermediate crude oil rose to $78.27 a barrel, while Brent Crude increased to $82.62 a barrel. Gold prices fell to $2,365 per ounce, and the 10-year Treasury bond remained steady at 4.435%. Additionally, Bitcoin saw a slight decline to $69,271.
Overall, the positive sentiment in the stock market was driven by Nvidia’s strong earnings report, signaling continued demand for AI technologies and boosting investor confidence. The Federal Reserve’s cautious approach to monetary policy and the ongoing monitoring of inflation data have also influenced market dynamics, with investors closely following updates from central bank officials. Despite recent fluctuations, market participants remain optimistic about the overall economic outlook and the resilience of key sectors like technology and energy.
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