The Dow Jones Industrial Average closed down 0.11%. and amounted to 32,764.65 points.
The S&P 500 ended the day up 0.88%. and amounted to 4,151.28 points.
The Nasdaq Composite gained 1.71 percent. and closed the session at 12,698.09 points.
Nvidia shares gained more than 24 percent on Thursday. The American manufacturer of chips used in artificial intelligence presented a sales forecast that exceeded market estimates.
Other IT companies also gained. AMD increased by over 11 percent, Micron by 4.6 percent, and Microsoft by 3.9 percent.
“Nvidia’s results were a good surprise last night. But more broadly, there is little reason for the market to grow: interest rates are not falling, global growth is not rebounding, full-year earnings are flat, and equity valuations are already decently high,” said Gilles Guibout, head of European equity strategies at Axa Investment Managers.
Snowflake shares fell 16.5 percent. The cloud computing company provided a weaker-than-expected second-quarter revenue forecast.
Best Buy’s stock rose more than 3 percent. Adjusted earnings per share for the quarter was $1.15 vs. $1.11 expected. The company confirmed its financial forecasts for the entire fiscal year.
Investors are following reports on debt ceiling talks in the US. Negotiations between the White House and Republicans in Congress continued on Thursday.
-The US president assured reporters on Thursday that there would be no bankruptcy of the United States, and negotiations with the Republicans on raising the debt limit were productive. At the same time, he admitted that both sides have significantly different visions of the budget.
According to Reuters, both sides are getting closer to working out a compromise, but it will have to be passed by Congress, where politicians on both sides expressed vehement opposition to compromise solutions.
“We expect a last-minute deal and waiting will cause a lot of problems in the market. There will likely be a period of increased volatility, which in turn will bring other issues back into the market narrative,” said Sonja Laud, director of investments at Legal & General Investment Management.
“Even disregarding the US debt ceiling, we stand by our view that the risk-reward ratio for the US equity market is low given elevated recession risk, tight valuations, high interest rates and tightening liquidity, so we prefer to hold cash over stocks with a profitability of about 5 percent.” JPMorgan said in a report.
In oil, July WTI futures are trading at $71.9 a barrel, down 3.2%, while July Brent futures are down 2.7%. up to USD 76.2/b. (PAP Business)
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