Nvidia inspired investors by its much stronger-than-expected quarterly results
Another rally in tech pushed the broader US market higher on Thursday, with indexes surging to fresh record highs. The S&P 500 had its best day in over year, adding 2.1%, the Nasdaq Composite surged nearly 3% to settle within striking distance of its all-time closing high. The Dow Jones climbed 1.2% to close above 39,000 for the first time in history. In individual stocks, shares of Nvidia rallied more than 16% to new all-time highs after the chip giant reported stronger-than-expected quarterly results. The company said total revenue rose 265% from a year ago. The firm also forecast another stellar revenue gain for the current quarter.
Inspired by Nvidia-led rally on Wall Street, Asian stocks were mostly higher on Friday. Hong Kong’s Hang Seng dropped 0.1%, the Shanghai Composite index added 0.55%, Australia’s S&P/ASX 200 was up 0.43%, and the Kospi in Seoul added 0.13%. Tokyo’s markets were closed for a holiday after surging to all-time highs during the previous session. Despite a shortened trading week in Japan, the Nikkei was among the best performers in the region this week, with a more than 1.5% rise. Chinese stocks were headed for a second straight week of gains, after the government revealed supportive measures for the economy.
In Europe, equities opened higher Friday, with the Stoxx 600 index adding 0.2% in early deals after yesterday’s close at a record high. On the data front, U.K. consumer confidence fell this month amid higher inflation. In Germany, showed that the GDP for the fourth quarter contracted by 0.3% and 0.2% on a quarterly and yearly basis, respectively. Both figures were in line with market expectations.
Meanwhile, the US dollar licks its wounds just below the 104.00 figure after yesterday’s brief dip to three-week lows around 103.43. The USD index was pressured by positive risk sentiment, but managed to attract renewed demand and thus recouped losses. On the weekly harts, however, the greenback turned negative after seven weeks of gains in a row. Now, the dollar needs to regain the 104.00 figure on a daily and weekly closing basis to stay afloat and resume the ascent after a short-lived pullback. The overall trend remains bullish as Fed rate cut expectations continue to wane amid strong economic data.