Global Stocks Surge as Nvidia’s Stellar Performance Ignites AI Rally
Global stock markets experienced a significant uplift following Nvidia Corp.’s impressive financial outlook, reigniting enthusiasm for artificial intelligence-driven investments and propelling the market into a bullish phase. Following a report of declining US jobless claims reaching a one-month low, Treasury yields experienced an uptick. Nvidia, the leading chipmaker by market value, saw its shares skyrocket in early trading in New York, poised to augment its market capitalization by nearly $250 billion.
This surge would surpass Meta Platforms Inc.’s previous record of a $197 billion single-session gain. Investors are now keenly reevaluating Nvidia’s price-to-earnings ratio, reflecting the company’s earnings growth outpacing its share price increase. Futures on the Nasdaq 100 rose by 2%, while S&P 500 futures indicated a potential breach of the 5,000 mark. Technological stocks also led advances in Europe, and Japan’s Nikkei 225 reached a new zenith. Meanwhile, the dollar experienced fluctuations.
Corporate Updates:
- AT&T Inc. users faced widespread call service disruptions on Thursday morning.
- Electric-vehicle manufacturer Rivian Automotive Inc. presented a lower-than-expected production outlook and announced further job reductions.
- AbbVie Inc. is exploring the sale of at least $13 billion in corporate bonds to finance its acquisitions of ImmunoGen Inc. and Cerevel Therapeutics Holdings Inc.
- Moderna Inc. outperformed analysts’ fourth-quarter revenue expectations by capturing a larger share of the Covid vaccine market from Pfizer Inc.
- Newmont Corp. announced its plan to divest six mines and two projects, aiming to generate $2 billion in cash.
- Intuitive Machines Inc. aims to land the first US-made lander on the moon in over 50 years on Thursday.
- E-commerce firm Etsy Inc. indicated a sluggish start to the fiscal year in its financial outlook.
- Shares of Lenovo Group Ltd. climbed over 3% as the world’s leading PC maker reported a return to growth amidst recovering demand.
- Grab Holdings Ltd., facing a slowdown in its online business, projected 2024 revenue that falls short of analysts’ predictions.
