
- Moving the markets
Nvidia stole the show today with its stellar earnings report, which sent its stock soaring 25% and added $200 billion to its market value. That’s the biggest one-day gain for any US company ever. The chipmaker also raised its outlook for the next quarter, thanks to the booming demand for artificial intelligence (AI) solutions.
The news lifted other chip stocks as well, but failed to inspire the rest of the market, which remained bogged down by the debt ceiling drama, the banking woes, the rising rates, and the inflation fears. Only 42% of the S&P 500 stocks are above their 200-day moving averages, indicating a narrow rally.
Speaker McCarthy said there was some “progress” in the debt talks, but also “major headwinds” to overcome. Bond yields spiked higher, pushing the US dollar to a six-week high and gold to a two-month low.
It’s hard to make sense of this market, where tech stocks can defy gravity while everything else is sinking. Something has to give eventually.
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