NEW YORK: The Nasdaq surged on Thursday (May 25) following a blowout earnings report by chip company Nvidia while lingering worries about US debt ceiling negotiations weighed on the Dow.
Shares of Nvidia soared nearly 25%, lifting the company'’s valuation to close to US$1 trillion (RM4.6 trillion) after it projected a huge jump in revenues tied to booming artificial intelligence technology.
But that positive point was countered by an announcement by credit rating agency Fitch placing the United States on credit watch negative over the debt ceiling impasse.
The tech-rich Nasdaq Composite Index gained 1.7% to 12,698.09.
The Dow Jones Industrial Average slipped 0.1% to 32,764.65, while the broad-based S&P 500 advanced 0.9% to 4,151.28.
Thursday’s trading extended a pattern of tech share strength throughout 2023 “with a very compelling story about artificial intelligence and its potential as a growth driver,“ said Angelo Kourkafas of Edward Jones.
With Nvidia, “it is more than a story”, he said. “It is translating into actual spike in revenue and profits.”
But Kourkafas said gains were countered by uncertainty about US monetary policy and the chance of further interest rate hikes.
He also cited the debt ceiling impasse.
On Wednesday night, Fitch put the United States on notice that its perfect credit rating could be jeopardised if the White House and Republican opposition fail to overcome their impasse on raising the nation's borrowing limit.
On Thursday, US President Joe Biden expressed confidence about the talks.
“There will be no default,“ he said. Biden also said that his negotiations with Republican Speaker Kevin McCarthy, who leads the narrow majority in the House of Representatives, had been “productive”. – AFP
Source: The Sun Daily
A word from our sponsor:
Need Help With Your Personal Finance / Money Issue or need a coach to help you structure or just want to learn the financial skill to self manage your financial matters and retirement. iLearnFromCloud.com
Need to solve a problem quickly, now you can solve it by learning the art of problem solving Art Of Problem Solving
Feeling hungry. Latest food news from Best Restaurant To Eat Malaysian Food and Travel Blog
Memory loss. Need to organize better. Solve problem fast with Free Mind Mapping Software Mind Mapping 101
Need A Customized System Development for your business or Going Paperless XPERT TECHNOLOGIES - Empowering The Paperless Economy
No comments:
Post a Comment