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Market Update: Dow Hits New High, Nvidia's Impact Felt
As the trading week comes to a close, the Dow Jones Industrial Average surged to a fresh all-time high, gaining 228.03 points to close at 41,563.08. This milestone was achieved despite the volatile trading patterns seen in the lead-up to Nvidia's quarterly earnings announcement. Nvidia's stock, a significant player in the artificial intelligence sector, experienced a decline on Thursday, negatively impacting the S&P 500 and pulling the Nasdaq Composite down as well.
Nvidia's Earnings Impact
Nvidia's latest earnings report exceeded both earnings per share and revenue forecasts, with a net income of $16.6 billion and revenue skyrocketing by 122%. However, the stock price dropped approximately 7% in after-hours trading due to concerns over declining gross margins. This decline heightened investor anxiety and contributed to a decrease in broader U.S. indexes on Wednesday.
Market Expectations
The release of the personal consumption expenditures (PCE) price index on Friday is expected to significantly influence the market. Economists predict a 0.2% rise in July for overall prices, translating to an annual increase of 2.5%. The core index is anticipated to show a 0.2% rise from the previous month, or a 2.7% increase year-over-year. This indicator is closely monitored by the Federal Reserve and may sway policymakers' decisions regarding interest rates in September.
Other Market Movers
In after-hours trading, Ulta Beauty experienced a decline of approximately 7% after falling short of expectations for both revenue and earnings in the second quarter. Conversely, athletic wear retailer Lululemon Athletica surged by 6% due to better-than-anticipated earnings. Dell Technologies saw a 3% rise, benefiting from fiscal second-quarter results that exceeded projections, buoyed by strong server sales.
Market Performance
As trading in August comes to a close, the S&P 500 is on track for a gain of nearly 1.3%, while the Dow is set to increase by 1.2%. The Nasdaq Composite, however, is the only major index showing a loss, down nearly 0.5% for the month. For the week, both the S&P 500 and Nasdaq are poised for declines of 0.5% and 2%, respectively, marking the first week of losses for both indexes in three weeks. In contrast, the Dow is expected to achieve its third consecutive positive week, rising by 0.4% during this timeframe.
Expert Insights
CNBC's Jim Cramer emphasized the need for investors to shift their focus away from Nvidia's dominance and towards other valuable stocks that have been overshadowed. He highlighted companies such as AMD, Apple, Amazon, and Salesforce, which are effectively utilizing generative artificial intelligence in their operations.
Original Article: https://www.cnbc.com/2024/08/29/stock-market-today-live-updates.html
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