Nvidia driven rally finally runs out of steam | InterPrac

Nvidia driven rally finally runs out of steam

Nvidia driven rally finally runs out of steam

 

US markets started the trading day in positive territory with the S&P 500 briefly passing the 5,500 level for the first time ever before giving up early gains and settling lower by the close.

The S&P 500 closed down 0.25 per cent and the Nasdaq finished 0.79 per cent lower. The Dow Jones bucked the broader trend by closing up 0.77 per cent. Stocks are headed for a winning week, with the S&P 500 and Nasdaq notching new records.

Turning to US sectors, the worst performer was Technology which finished down 1.6 per cent. The best performing sector was Energy which finished 1.86 per cent higher.

After opening higher AI giant Nvidia closed 3.5 per cent lower by the close as the recent surge finally ran out of steam and investors took a breather. Nvidia stock has climbed more than 160 per cent this year.

In other company news Darden Restaurants closed up 1.5 per cent after reported better than expected earnings. Gilead Sciences surged 8.5 per cent after confirming a successful late-stage trial of its HIV prevention shot.

On the macro front, fresh economic data added to the view that the economy is softening, with higher-than-expected weekly jobless claims and poor housing starts and permits. A reading of the Philadelphia Fed Manufacturing Index also came in below estimates.

In European news, the Bank of England held rates steady, yet left the door open for a pivot to rate cuts in the months ahead. Norway’s central bank also held steady. In contrast, the Swiss National Bank unexpectedly cut its key rate by 25 basis points, making it the SNB’s second cut this year.

Futures

The SPI futures are pointing to a 0.1 per cent rise.

Currency

One Australian dollar at 7.30am was buying 66.57 US cents.

Commodities

Gold has added 0.94 per cent. Silver has gained 4.23 per cent. Copper has risen 1.63 per cent. Oil has added 0.72 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.82 per cent, Frankfurt gained 1.03 per cent, and Paris closed 1.34 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei added 0.16 per cent, Hong Kong’s Hang Seng lost 0.52 per cent while China’s Shanghai Composite closed 0.42 per cent lower.

Yesterday, the Australian share market closed flat at 7,769.44.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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Source: Finance News Network

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