Nvidia (NVDA) Surges 14% as Treasury Yields Decline and Unemployment Claims Drop
By Shares of Nvidia (NVDA 14.02%) surged 14% on Thursday after the software company posted better-than-expected results in the fourth quarter and boosted its current quarter guidance. The 10-year Treasury yield declined four basis points to 3.87% and U.S. crude oil prices rose nearly 2% to $75.39 a barrel.[0]
Unexpectedly, the US Department of Labor's initial jobless claims decreased to 192,000 from 194,000 in the prior week.[1] The Commerce Department's second estimate of the fourth-quarter GDP growth rate decreased to 2.7%, lower than the expected 2.9% that was shown in the first estimate.
Revenue reported by Nvidia for the fourth quarter of the fiscal year was $6.05 billion and adjusted earnings per share came in at 88 cents, surpassing the expectations of Wall Street.[2] It also forecast $6.5 billion in sales for the upcoming quarter.[3]
“AI is at an inflection point, setting up for broad adoption reaching into every industry,” CEO Jensen Huang said in a statement.[4] An increased curiosity in the multifaceted features and potential of generative AI is being observed.[5]
Despite exceeding expectations, the stock of EBAY dropped 5.5% as the company's earnings and revenue were reported.[6] Shares of Lucid Group (LCID) dropped 17% due to disappointing sales numbers.[7]
The government released new information regarding the fourth quarter Gross Domestic Product (GDP) in the economic sector.[8] Revisions to economic growth figures for the last quarter of the year put it at 2.7%, lower than the 2.9% that economists had forecasted. Meanwhile, personal income is expected to have risen 1.2% last month, according to Dow Jones consensus estimates. The figure was an increase of 0.2% compared to the preceding month.[9]
Friday morning will bring with it the personal consumption expenditures price index, which is the Federal Reserve's preferred gauge of inflation.[0] Economists expect a 1% gain for personal income with consumer spending rising 1.2%.
Raphael Bostic, President of the Federal Reserve Bank of Atlanta, and Mary Daly, President of the Federal Reserve Bank of San Francisco, are set to give speeches later today.[10]
In conclusion, Thursday's market saw shares of Nvidia surge 14%, while the 10-year Treasury yield declined four basis points to 3.87%. Unexpectedly, the US Department of Labor's initial jobless claims decreased to 192,000 from 194,000 in the prior week.[1]
0. “Tech-Driven Stock Rally Sputters Amid Fed Overhang: Markets Wrap” Yahoo Canada Finance, 23 Feb. 2023, https://ca.finance.yahoo.com/news/asia-stocks-face-pressure-fed-224556015.html
1. “Stock Market Today: Nasdaq Outperforms as Nvidia Outlook Impresses” Kiplinger's Personal Finance, 23 Feb. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-022323-nasdaq-outperforms-as-nvidia-outlook-impresses
2. “NVDA Stock: Nvidia Delivers Upbeat Q4 Report | Investor's Business Daily” Investor's Business Daily, 23 Feb. 2023, https://www.investors.com/news/technology/nvda-stock-nvidia-delivers-upbeat-q4-report/
3. “Why did Nvidia stock jump up today? Strong Q4, guidance leads to praise (NVDA)” Seeking Alpha, 23 Feb. 2023, https://seekingalpha.com/news/3940241-why-did-nvidia-stock-jump-up-today-strong-q4-guidance-leads-to-praise
4. “Here's Why Nvidia Stock Surged Today” The Motley Fool, 23 Feb. 2023, https://www.fool.com/investing/2023/02/23/heres-why-nvidia-stock-surged-today/
5. “Nvidia Stock Soars on AI Outlook, Lifting ETFs” ETF.com, 23 Feb. 2023, https://www.etf.com/sections/features-and-news/nvidia-stock-soars-ai-outlook-lifting-etfs
6. “Stocks Higher Thursday Afternoon; Labor Market Shows Continued Strength” InvestorsObserver, 23 Feb. 2023, https://www.investorsobserver.com/news/market-updates/stocks-higher-thursday-afternoon-labor-market-shows-continued-strength
7. “Stock market news today: Stocks fall after back-to-back losses for S&P 500, Dow” Yahoo News, 23 Feb. 2023, https://news.yahoo.com/stock-market-news-today-february-23-2023-122852056.html
8. “S&P 500 breaks 4-day losing streak on strong Nvidia results; Nasdaq, Dow also rise” Seeking Alpha, 23 Feb. 2023, https://seekingalpha.com/news/3940189-sp-500-breaks-4-day-losing-streak-on-strong-nvidia-results-nasdaq-dow-also-rise
9. “Stock futures fall as investors await key inflation and consumer data: Live updates” CNBC, 24 Feb. 2023, https://www.cnbc.com/2023/02/23/stock-market-today-live-updates.html
10. “S&P 500 snaps 4-day losing streak as stocks end choppy session higher” MarketWatch, 23 Feb. 2023, https://www.marketwatch.com/story/wall-street-set-to-break-four-session-losing-streak-led-by-nasdaq-after-nvidia-earnings-pop-b890e98d
