The market’s focus remained on Nvidia, as Wall Street’s most influential stock rose 5.1 percent overnight after the chipmaker reported third-quarter profit of $31.9 billion. That is an increase of 65 percent compared to last year and more than analysts expected.The Santa Clara, California-based company also forecasts that sales for the current November to January quarter will be about $65 billion, nearly $3 billion above analysts’ expectations, an indication that demand for its AI chips remains at a fever pitch.
Nvidia is the most valuable company on Wall Street by market cap, with a short valuation of more than $5 trillion. That means its movements have more influence on the S&P 500 than any other stock, and some days it can single-handedly determine the direction of the index.
By continuing to deliver big profits for investors, Nvidia has largely calmed recent criticism that its shares shot too high, too fast. Nvidia has become a bellwether for the broader frenzy surrounding artificial intelligence technology, as other companies use its chips to ramp up their AI efforts. Walmart also reported its latest quarterly results on Thursday. The Arkansas retailer delivered another standout quarter, with strong sales and profits that exceeded Wall Street expectations as it continues to lure cash-strapped Americans who have grown increasingly concerned about the economy and prices.
While other retailers cut forecasts, the nation’s largest retailer raised its financial outlook Thursday after a strong third quarter, gearing up for a strong holiday shopping season.
Traders also made their final moves ahead of the US government’s September jobs report on Thursday. The labor market data, typically released in the first week of each month, was delayed due to the six-week federal government shutdown.
The Labor Ministry said on Wednesday it will not publish a full jobs report for October because the 43-day shutdown meant it could not calculate the unemployment rate and some other key figures.
The labor market has become so sluggish this year that the Fed has already cut its key interest rate twice. Lower interest rates can boost the economy and investment prices, and expectations on Wall Street were that there would be more cuts, including at the Fed’s next meeting in December.
But some Fed officials are hinting they may have to pause next month, in part because inflation has remained stubbornly above the Fed’s 2 percent target. Lower interest rates can worsen inflation.
#Nasdaq #Nvidia #gains #jobs #data