Wednesday, 31 May 2023


Nasdaq leads Wall Street rally after Nvidia’s bumper forecast By Reuters

Nasdaq leads Wall Street rally after Nvidia's bumper forecast

© Reuters. FILE PHOTO: A trader work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 24, 2023. REUTERS/Brendan McDermid

By Shreyashi Sanyal and Shristi Achar A

(Reuters) – The tech-heavy Nasdaq led Wall Street gains on Thursday as Nvidia (NASDAQ:) shares soared on a blowout forecast that also lifted other AI-related companies, while investors watched for signs of progress in U.S. debt ceiling talks.

Shares of Nvidia Corp , the world’s most valuable listed chip company, jumped 25.5% to hit a record high, after it forecast quarterly revenue 50% higher than Wall Street estimates and said it was ramping up supply to meet demand for its artificial-intelligence chips.

Heavyweight AI players such as Microsoft Corp (NASDAQ:) and Alphabet (NASDAQ:) Inc rose about 2.2% and 1.7%, respectively, while the advanced 4.6% to its highest level in more than a year.

“The word of the month is AI,” said Sam Stovall, chief investment strategist at CFRA Research in New York. “Investors are just looking for any area of growth and right now that happens to be semiconductors.”

Other chip companies including Advanced Micro Devices (NASDAQ:) Inc, Micron Technology Inc (NASDAQ:) and Broadcom (NASDAQ:) Inc rose between 2.6% and 9.5%.

component Intel Corp (NASDAQ:), which has little AI exposure, fell 5.7%.

Wall Street’s main indexes have dropped sharply in the last two sessions and could log their worst week in more than two months as investors await clarity on whether lawmakers will strike a deal to raise the nation’s $31.4 trillion debt ceiling or risk a calamitous default.

Later in the day, the White House and congressional Republicans will resume negotiations to try to reach a deal as the June 1 deadline looms large.

U.S. House Speaker Kevin McCarthy said to Fox News that he was unsure if the two sides will be able to reach a deal on Thursday.

Reflecting the market uncertainty, yields on U.S. Treasury bills maturing in early June rose above 7%, while two-year yields hit their highest since March after ratings agencies Fitch and DBRS Morningstar put the United States on credit watch for a possible downgrade. [US/]   

Meanwhile, data showed the number of Americans filing new claims for unemployment benefits rose only moderately last week, while a Commerce Department report confirmed economic growth slowed in the first quarter. 

At 10:03 a.m. ET, the Dow Jones Industrial Average was down 37.98 points, or 0.12%, at 32,761.94,…

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