The Nasdaq 100 outperformed as a strong outlook from Nvidia Corp. gave fresh impetus to the artificial intelligence hype that’s boosting tech stocks this year.
(Bloomberg) — The Nasdaq 100 outperformed as a strong outlook from Nvidia Corp. gave fresh impetus to the artificial intelligence hype that’s boosting tech stocks this year.
The S&P 500 advanced for a second day. Nvidia hit an all-time high, extending this year’s gains. Treasury yields increased after mixed economic data.
Nvidia’s update, along with the AI stock frenzy, are punctuating a week that’s seen broad equity-market gains and renewed risk taking by investors. While worries about rising bond yields dominated the conversation last week, megacap tech is back in focus as investors gauge whether their earnings can power a stock market that’s been treading water for the past month.
“Nvidia has shown that the demand for AI technology remains strong despite what is going on elsewhere,” said Stuart Cole, chief macro economist at Equiti Capital in London. “The potential remains for equity markets to soften again. But I can easily see AI-related stocks, like Nvidia, and tech shares probably more generally, being seen as a safe haven in the equity world.”
Next in focus will be the gathering of top central bankers at Jackson Hole, with Federal Reserve Chair Jerome Powell’s speech due Friday. Former Fed Bank of St. Louis President James Bullard said a reaccelerating US economy could prompt higher rates.
In other corporate news, Snowflake Inc. rose after the software company reported earnings that beat expectations. Boeing Co. and its biggest supplier, Spirit AeroSystems Holdings Inc., fell after the planemaker disclosed improperly drilled holes in a component that helps maintain cabin pressure within the 737 Max jet. Dollar Tree Inc. dropped as its outlook fell short of analyst estimates.
Key events this week:
- Japan Tokyo CPI, Friday
- US University of Michigan consumer sentiment, Friday
- Fed Chair Jerome Powell, ECB President Christine Lagarde to address Jackson Hole conference, Friday
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.3% as of 9:32 a.m. New York time
- The Nasdaq 100 rose 0.6%
- The Dow Jones Industrial Average was little changed
- The Stoxx Europe 600 was little changed
- The MSCI World index rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index rose 0.3%
- The euro fell 0.3% to $1.0827
- The British pound fell 0.7% to $1.2635
- The Japanese yen fell 0.7% to 145.87 per dollar
Cryptocurrencies
- Bitcoin fell 1% to $26,335.81
- Ether fell 1.2% to $1,663.46
Bonds
- The yield on 10-year Treasuries advanced three basis points to 4.22%
- Germany’s 10-year yield advanced one basis point to 2.53%
- Britain’s 10-year yield declined two basis points to 4.45%
Commodities
- West Texas Intermediate crude fell 1.2% to $77.91 a barrel
- Gold futures fell 0.4% to $1,941.20 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson.
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