Nvidia and Amgen drive market gains while Alphabet and AMD drop after disappointing earnings results
On Wednesday, Stocks rose for a second consecutive day as investors moved past concerns over trade disputes that had pressured the market earlier in the week, according to CNBC.
The Dow Jones Industrial Average gained 317.24 points, or 0.71 percent, closing at 44,873.28. Nvidia led the index’s advance with a sharp rise.
The S&P 500 increased by 0.39 percent to finish at 6,061.48, while the Nasdaq Composite edged up 0.19 percent, closing at 19,692.33.
Nvidia’s stock jumped more than 5 percent after Super Micro Computer announced full production availability of its artificial intelligence data centre featuring Nvidia’s Blackwell platform.
Super Micro shares also climbed approximately 8 percent after the announcement.
Amgen contributed to the Dow’s gains with a 6 percent increase following the release of its fourth-quarter earnings, which surpassed expectations for both adjusted revenue and profit.
Major stock indices fell on Monday after the US announced a 10 percent tariff on Chinese imports over the weekend. Later that day, stocks began recovering, continuing that trend into Tuesday.
China responded to the US tariffs by imposing levies of up to 15 percent on US goods.
Alphabet’s stock dropped 7 percent after the company reported lower-than-expected cloud revenue. Increased spending on artificial intelligence concerned investors, who feared the tech giant might take longer than expected to benefit from its AI initiatives.
The company also reported overall revenue that missed expectations.
AMD shares declined 6 percent after the company’s data centre revenue for the fourth quarter fell short of projections.
Apple’s stock closed slightly lower after Bloomberg News reported that Chinese regulators were considering launching a formal investigation into the company’s App Store fees and policies.
Dan Loeb, in an investor letter on Tuesday, stated that Third Point anticipates a favourable environment for investing in equities.
However, he cautioned that periodic dislocations could occur due to the unconventional approach of the current US administration in conveying and enacting policies that impact markets and the US economy.
