(News Bulletin 247) – Wall Street is expected to open without a clear trend on Thursday morning, torn between the hopes raised by results well above Nvidia’s expectations and more mixed economic indicators.
Half an hour before the opening, the ‘future’ contract on the Dow Jones index fell by 0.2%, but that on the Nasdaq posted a gain of 0.9%, announcing a mixed start to the session.
Tech stocks – which have helped markets rebound this year – should continue to drive the trend after Nvidia’s performance reassured investors about the health of this key sector of the economy. .
The designer of processors jumped almost 7% in pre-market quotations after reporting Wednesday evening better than expected quarterly results, favorable outlook and significant share buybacks.
‘Market expectations were very high, which did not prevent the group from largely exceeding them’, underlines a trader.
‘And things could still improve if the supply problems were to ease,’ he notes.
According to Dan Ives, analyst at Wedbush Securities, the technology sector is experiencing, thanks to the enthusiasm around AI, a moment not seen in more than 30 years and which he considers comparable to the emergence of the Internet in 1995 or when the iPhone was launched in 2007.
In the wake of Nvidia, stocks linked to semiconductors (AMD, Intel, etc.) and artificial intelligence (Meta, Alphabet, etc.) should be particularly sought after today.
On the economic front, the US labor market remains robust, as evidenced by the latest unemployment figures released in the morning.
The number of registrations for unemployment benefits fell by 10,000 during the week of August 14, standing at 230,000 according to the Department of Labor against 240,000 the previous week.
This indicator also had the effect of accentuating the rebound in US government bond yields, with the Treasuries rate returning to above 4.23% after falling below 4.20% yesterday.
Still on the side of the economy, the Commerce Department announced a 5.2% drop in durable goods orders last month, after a 4.4% increase in June linked to orders taken by Boeing at Le Bourget.
The latter is however expected to drop sharply today in response to press reports evoking new production problems around its 737 MAX.
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