Nvidia lifts Nasdaq but investors fret over Fed speech
Blockbuster earnings from AI chip behemoth Nvidia boosted technology stocks on Thursday, but broader market movements were lacklustre as investors awaited a key speech by the US Federal Reserve chairman on the prospects for the world's biggest economy. While inflation and rising government bond yields worldwide have tempered the euphoria surrounding the artificial intelligence boom in recent…
Nvidia's blockbuster earnings from AI chip production sent technology shares soaring on Thursday, but the broader market showed little movement as investors awaited a crucial speech from the US Federal Reserve chairman. Even though rising inflation and government bond yields have dampened the excitement surrounding the AI boom, Nvidia's remarkable results lifted the chipmaker's shares by nearly nine percent.
Fellow tech giant Salesforce also contributed to market gains with strong results. LPL Financial analyst Adam Turnquist noted that the positive outlook for AI remained robust, as Nvidia's earnings indicated that the AI capital expenditure cycle was not slowing down, but rather continuing at "full steam." Nvidia's results, which more than doubled revenue in the second quarter to US$96 billion, propelled all three major US indices, with the tech-focused Nasdaq surging 1.6 percent.
However, the gains were uneven across sectors, with technology leading the way and consumer discretionary and industrials lagging. Investors are eagerly anticipating Fed Chair Kevin Warsh's speech at a central bankers' conference in Jackson Hole, Wyoming, where he is expected to provide insights into the Fed's approach to managing inflation, which currently exceeds their target.
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