Tech Stocks Rally as Nvidia’s Earnings Optimism Propels Nasdaq Up 1%
The Nasdaq surged more than 1% on Monday, boosting the S&P 500, as investors expressed optimism ahead of Nvidia’s earnings report later this week. The strong performance of technology-related stocks contributed to the market’s upward movement, while the Dow Jones industrial average remained relatively unchanged.
Investors turned their attention to Nvidia, a leader in the artificial intelligence (AI) sector, as the company is expected to announce quarterly revenue that surpasses analysts’ expectations. This anticipation led to a 200% increase in Nvidia’s stock value this year. HSBC recently raised its price target for Nvidia to $780, reinforcing its position as one of Wall Street’s top investments.
Nvidia is considered the brand for AI, said Quincy Krosby, chief global strategist at LPL Financial. She added, A catalyst coming in with Nvidia would be extremely helpful.
In addition to optimism surrounding Nvidia, investors are eagerly awaiting Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole central bankers’ meeting. Concerns over higher interest rates have pushed up US Treasury yields, raising worries about the potential impact on businesses and consumers.
The tech sector played a significant role in the market’s gains, with semiconductors experiencing a notable increase. Palo Alto Networks, a leading cybersecurity firm, saw a surge in its stock value after releasing strong quarterly results that exceeded expectations.
The S&P 500 rose by 0.70% to close at 4,400.13 points, while the Nasdaq Composite gained 1.55% to reach 13,497.42 points. Conversely, the Dow Jones Industrial Average fell slightly by 0.11% to 34,463.26 points.
However, not all stocks experienced gains. Johnson & Johnson’s shares declined after the healthcare conglomerate announced that it would retain a stake of approximately 9.5% in its newly separated consumer health unit, Kenvue. Furthermore, Goldman Sachs saw a dip in its stock value as the bank confirmed it was considering selling a part of its wealth business.
Looking ahead, investors will closely monitor the developments in the tech sector, particularly Nvidia’s earnings report, which could have a significant impact on market performance. With the Nasdaq continuing to climb and the S&P 500 maintaining its upward trajectory, tech stocks are poised to play a crucial role in driving market growth.