S&P 500 hits new record as Nvidia earnings boost tech sector

S&P 500 hits new record as Nvidia earnings boost tech sector

The S&P 500 climbed to a fresh all-time high on Thursday, led by a surge in tech stocks after Nvidia reported stellar quarterly results that highlighted the artificial intelligence boom.

The broad market index gained 1.3%, closing at 5,078.18, while the Nasdaq Composite rose 2%, ending at 16,035.30. The Dow Jones Industrial Average added 0.6%, or 225 points, to finish at 38,049.13.

The major averages snapped a three-day losing streak and posted their fourth positive month in a row.

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Traders on the floor of the New York Stock Exchange on April 14, 2022.

Nvidia soared more than 12% to a record high after the chip giant said its total revenue jumped 265% from a year ago, driven by its booming AI business. Nvidia, which has become one of the largest U.S. companies by market value, also forecast another strong revenue gain for the current quarter, beating analysts’ expectations.

Other tech names also rallied. Meta and Amazon advanced more than 2% each. Microsoft and Netflix rose more than 1%.

AI optimism has fueled the impressive rally in Nvidia, along with other Big Tech names, over the past year. The chipmaker’s blowout quarter could further boost confidence in the space that has supported the broader market.

“There’s potentially a lot of growth ahead for this company with years of AI investment expected,” said David Russell, global head of market strategy at TradeStation. “Bears tried to hit NVDA and sell the news, but there isn’t much to dislike in this report.”

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The market also shrugged off a disappointing report on consumer confidence, which fell in February amid concerns about the labor market and the political polarization. The Conference Board’s Consumer Confidence Index dropped to 106.7, below the revised 110.9 in January and the Dow Jones estimate of 115.1.

Investors are awaiting the release of key inflation data on Thursday, which could provide clues on the health of the economy and the direction of monetary policy. The personal consumption expenditure price index, the Fed’s preferred inflation gauge, is expected to show a 0.4% increase in January from the previous month and a 4.8% rise from a year ago. Personal income and spending data will also be released.

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