NVIDIA (NASDAQ:NVDA) Stock Soars After Better-Than-Expected Q4 Results; Seagen, Pfizer in Deal Talks; U.S. PCE Inflation Data Ahead
By Shares of Nvidia (NVDA) have been soaring after the software company posted better-than-expected results in the previous quarter while boosting current quarter guidance, and said chip demand for artificial intelligence (AI) applications such as ChatGPT is surging. On Thursday, NVDA rose 14% as investors reacted to the news that the company is taking advantage of this AI-driven boom in chip demand.
Nvidia (NASDAQ:NVDA) reported better-than-expected fourth-quarter results and guidance, with Wall Street analysts praising the chip maker. The stock of NVIDIA Corp.[0] On Monday, NVDA, +0.92% experienced a 0.92% increase to $235.01, along with an overall bullish trading session for the stock market. The S&P 500 Index SPX, +0.31% rose 0.31% to 3,982.24, and the Dow Jones Industrial Average DJIA, +0.22% climbed 0.22% to 32,889.09.[0] NVIDIA Corp. ended at $235.01, which was $54.45 lower than its 52-week high of $289.46 set on March 29th.[0]
Pfizer (NYSE:PFE) is reportedly in the beginning stages of discussions to purchase the cancer medication producer Seagen (NASDAQ:SGEN). This would be a great help to Pfizer's oncology division.[1] Seagen experienced an increase of over 10[2]
Information released on Friday indicated that the core Personal Consumption Expenditure Price Index (the Federal Reserve's favourite measure of inflation) was up 0.6% month-on-month and 4.7% year-on-year in January, surpassing expectations of 0.4% and 4.3%, respectively. This has raised apprehensions that the Fed may have to maintain higher interest rates for a longer period of time to control inflation.[3] Moreover, United States personal spending revealed the strongest rise in 1-3/4 years, surging +1.8% m/m in January in contrast to forecasts of +1.3% m/m.[4] The University of Michigan's consumer sentiment index reached a 13-month peak of 67.0 in February.[4]
In a few hours, attention will be directed to the U.S. core personal consumption expenditures (PCE) price index, the Federal Reserve's favored measure of inflation.[5]
0. “NVIDIA Corp. stock rises Monday, outperforms market” MarketWatch, 27 Feb. 2023, https://www.marketwatch.com/data-news/nvidia-corp-stock-rises-monday-outperforms-market-c1c950d4-c0ff64d0f3e7
1. “Stock market news today: Stocks rise as Wall Street rebounds from worst week of 2023” Yahoo News, 27 Feb. 2023, https://news.yahoo.com/stock-market-news-live-updates-february-27-2023-130555308.html
2. “S&P 500 climbs as dip buyers pile into growth stocks following recent rout By Investing.com” Investing.com, 27 Feb. 2023, https://www.investing.com/news/stock-market-news/sp-500-climbs-as-dip-buyers-pile-into-growth-stocks-following-recent-rout-3016030
3. “Dow Jones Futures Fall: Nasdaq Rallies On Nvidia, But PCE Inflation Report Looms | Investor's Business Daily” Investor's Business Daily, 24 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-nasdaq-rallies-up-to-resistance-on-nvidia-all-eyes-on-pce-inflation-report/
4. “Stocks Set To Open Higher After Worst Week Of The Year, Retail Earnings In Focus” Barchart, 27 Feb. 2023, https://www.barchart.com/story/news/14581554/stocks-set-to-open-higher-after-worst-week-of-the-year-retail-earnings-in-focus
5. “Futures are Signaling a Weak Open for Wall Street, U.S. PCE Data In Focus” Barchart, 24 Feb. 2023, https://www.barchart.com/story/news/14518036/futures-are-signaling-a-weak-open-for-wall-street-u-s-pce-data-in-focus
