Dow, S&P 500 End At Records After Blowout Nvidia Results

New York, (APP - UrduPoint / Pakistan Point News - 23rd Feb, 2024) The Dow Jones index finished above 39,000 for the first time Thursday following mammoth earnings from Nvidia that prompted a fresh round of bullish buying over artificial intelligence.

The Dow finished at 39,069.11, up 1.2 percent.

The broad-based S&P 500 jumped 2.1 percent to 5,087.03, also a record, while the tech-rich Nasdaq Composite Index surged 3.0 percent to 16,041.62, leaving it about 15 points short of an all-time high.

Shares of Nvidia surged 16.4 percent, lifting its market value to almost $2 billion, after reporting that quarterly profits soared to $12.3 billion -- on record high revenue driven by demand for its technology to power artificial intelligence.

"Nvidia shows that AI is here to stay," said Adam Sarhan of 50 Park Investments. "It's a tipping point where AI is going to go mainstream and get mass adoption and it's going to be very bullish.

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Prior to Nvidia's results, stocks had been under pressure in recent days as investors shifted their expectations on monetary policy, now eyeing later Federal Reserve interest rate cuts.

But those concerns were outweighed Thursday by the buzz over AI. Other companies tied to AI had big gains, including Advanced Micro Devices, up 10.7 percent, and Super Micro Computer, up 32.9 percent.

Among other companies, Rivian shares plunged more than 25 percent as it offered a tepid production forecast for its electric vehicles and said it would trim headcount.

Moderna surged 13.5 percent after reporting a surprise profit and pointed to "significant pipeline advancements" in 2023 on new drug developments.

AT&T fell 2.4 percent as it suffered an hours-long outage affecting thousands of US consumers. By mid-afternoon, the company said service had been restored.