Dow surges to a new record as Wall Street rebounds. Nvidia's dip pressures Nasdaq despite strong earnings
The Dow Jones Industrial Average set a new record on Thursday, rising by 243.63 points, or 0.59 percent, to close at 41,335.05.
This increase came as Wall Street aimed to recover from the sharp sell-off earlier in the month, according to CNBC.
Gains in stocks like Goldman Sachs, Intel, and Visa propelled the 30-stock index to its new high.
While the Dow saw gains, the S&P 500 finished just below the flatline, closing at 5,591.96. The Nasdaq Composite, however, dropped by 0.23 percent, ending the session at 17,516.43. The decline in the Nasdaq was partly due to a 6.4 percent drop in Nvidia's stock.
Although the AI chipmaker exceeded expectations for both revenue and earnings in its fiscal second quarter and provided a positive sales outlook for the current quarter, the market responded less favourably than expected.
“Death, taxes, and NVDA beats on earnings are three things you can bank on,” explained Ryan Detrick, chief market strategist at Carson Group, regarding Nvidia's performance. “However, the size of the beat this time was smaller than in previous quarters. Although future guidance was raised, it wasn’t by as much as we've seen before.”
He added, “Nvidia is still a great company, with revenue growing at 122 percent, but it seems the expectations were set a bit too high this earnings season.”
Thursday also brought economic data that supported the stock market. Weekly jobless claims decreased compared to the previous week, which helped ease concerns about a potential recession.
Additionally, the second-quarter gross domestic product (GDP) growth was revised upward to 3 percent from an initial estimate of 2.8 percent, further boosting investor confidence.
