by Caroline Valetkevitch
NEW YORK (Reuters) – The New York Stock Exchange ended sharply higher on Wednesday, in the wake of Nvidia’s gains ahead of the publication, after the close, of very solid expected quarterly results, while the group produces semi- widely used drivers for artificial intelligence (AI) services.
The Dow Jones Industrial Average gained 0.54%, or 184.15 points, to 34,472.98 points.
The broader S&P-500 gained 48.46 points, or 1.10%, to 4,436.01 points.
The Nasdaq Composite advanced for its part by 215.16 points (1.59%) to 13,721.03 points.
Nvidia surprised with a lofty forecast in May, prompting a rebound in its stock and the tech sector as a whole amid heightened interest in AI. Investors are anticipating a similar scenario with the semiconductor maker’s post-closing statement.
After reaching an unprecedented session record the day before, Nvidia ended the session up 3.2%.
Optimism on Wall Street was also bolstered by the decline in the ten-year US Treasury yield, which had stood at a 16-year high, after lackluster data on economic activity in the United States and in the euro area.
Nvidia will have a big impact on market confidence, not just with its results, but also with its AI forecasts and commentary, commented Rick Meckler, partner at Cherry Lane Investments in New Jersey.
He also said that “what troubles the market is the persistent rise in longer-term rates”.
Investors are waiting for Federal Reserve (Fed) Chairman Jerome Powell to speak at the Jackson Hole, Wyoming meeting on Friday for any clues about the U.S. central bank’s monetary policy.
Data shows that US activity approached the point of stagnation in August, with growth at its weakest level since last February, weighed down in particular by a contraction in new business in the services sector. The trough in the euro zone was bigger than expected.
According to a Reuters survey of strategists, the S&P-500 will post only marginal gains through to the end of the year, after the index’s significant rise so far.
( Jean Terzian)
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