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    Nvidia Surges 14%, US Treasury Yields Rise, and Market Watchers Eye More Fed Rate Hikes


    Shares of Nvidia (NVDA) surged 14% on Thursday 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.[0] The strong results coincided with an unexpected drop in weekly jobless claims to 192,000 and a revised 2.7% gross domestic product for the fourth quarter.[1]

    On Wednesday, the 10-year U.S. Treasury yield decreased to 3.92% following the publication of the minutes of the most recent Federal Reserve policy meeting.[2] The 10-year yield rose to 3.93% Thursday morning, which would be the fifth consecutive weekly increase if it holds.[3] Ending a six-day downturn, U.S. crude oil prices jumped up by almost 2% to $75.39 per barrel.[4]

    Pre-market trading saw a drop of more than 4% for eBay (EBAY), as the company reported a decrease of 9% year-over-year in active buyers, resulting in the seventh consecutive quarter of decline. Additionally, they anticipate a “challenging” margin outlook in 2021.[5] Unity Software has dropped by over 8% after expecting full-year revenue to be lower than what analysts had predicted.[6] Dollar General's stock dropped by over 4% after the company revised its predicted Q4 earnings per share downwards.[6]

    Many market analysts anticipate that the Federal Reserve will raise rates twice more during the spring, with a 0.25% increase in March, another in May, and possibly an additional one in June.[7] Dow Jones consensus estimates anticipate that personal income increased by 1.2% in the prior month.[8] The figure rose from a 0.2% increase in the preceding month.[9] It is predicted that consumer expenditure will increase by 1.4% in January, after having dropped by 0.2% in the month prior.[9] Friday morning will see the release of the Federal Reserve's favored inflation measure, the personal consumption expenditures price index.[10]

    On the positive side, Nvidia is launching new AI cloud services in partnership with leading cloud-infrastructure providers, such as Microsoft, Alphabet, and Oracle.[11] Nvidia's AI supercomputer, software, and generative AI models will be more accessible to customers with these AI-as-a-service offerings.[12] Meanwhile, the Nasdaq Composite (COMP.IND) closed +0.7%, the S&P 500 (SP500) finished +0.[13]

    0. “Nvidia Shares Soar on Earnings Beat, Chip Demand for AI Applications” Investopedia, 23 Feb. 2023,

    1. “Stock Market Today: Nasdaq Outperforms as Nvidia Outlook Impresses” Kiplinger's Personal Finance, 23 Feb. 2023,

    2. “Dow Jones Futures Rise: Nvidia Earnings Lift Chips; S&P 500 Set To Bounce From Key Support | Investor's Business …” Investor's Business Daily, 23 Feb. 2023,

    3. “Dow Jones Rises After Key Economic Data; Nvidia Surges On Earnings, Lucid Crashes On Sales Miss” Investor's Business Daily, 23 Feb. 2023,

    4. “Dow futures rise 85 pts; bullish Nvidia guidance boosts sentiment By”, 23 Feb. 2023,

    5. “Stocks Higher Thursday Afternoon; Labor Market Shows Continued Strength” InvestorsObserver, 23 Feb. 2023,

    6. “Markets Today: Nvidia's Bullish Revenue Outlook Lifts Stock Index Futures” Barchart, 23 Feb. 2023,

    7. “Bears Have the Edge as the Market Awaits More Inflation Data” RealMoney, 23 Feb. 2023,

    8. “Dow Jones Futures: Nasdaq Rallies Up To Resistance On Nvidia; All Eyes On PCE Inflation Report | Investor's …” Investor's Business Daily, 23 Feb. 2023,

    9. “Stock futures slip as investors await key inflation and consumer data: Live updates” CNBC, 23 Feb. 2023,

    10. “S&P 500 snaps 4-day losing streak as stocks end choppy session higher” msnNOW, 23 Feb. 2023,

    11. “Nvidia Gains After AI Computing Demand Helps Lift Forecast” Yahoo! Voices, 23 Feb. 2023,

    12. “Here's Why Nvidia Stock Surged Today” The Motley Fool, 23 Feb. 2023,

    13. “S&P 500 breaks 4-day losing streak on strong Nvidia results; Nasdaq, Dow also rise” Seeking Alpha, 23 Feb. 2023,

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