U.S. Stocks Rise as Nvidia (NVDA) Shares Surge 14%, Jobless Claims Unexpectedly Fall
Shares of Nvidia (NVDA 14.02%) rose 14% on Thursday as investors reacted to the company's better-than-expected fourth-quarter performance and stronger guidance. The semiconductor giant is benefiting from the increased demand for chips for artificial intelligence (AI) applications such as ChatGPT.
U.S. stocks were on the rise on Monday, trying to recover from last week's losses, as investors parsed economic data and speculated about the Federal Reserve's path forward on rate hikes. Data showed the core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred gauge of inflation, stood at +0.6% m/m and +4.7% y/y in January, stronger than expectations of +0.4% m/m and +4.3% y/y, adding to worries that the Fed may have to keep rates higher for longer to tame inflation.
The 10-year Treasury yield (US10Y) was down 1 basis point to 3.91% while the 2-year yield (US2Y) was flat at 4.70%. The Commerce Department is scheduled to release the Durable Goods Orders report for January at 8:30 a.m.  Economists, on average, expect Durable Goods Orders to fall 4% month-over-month in January, reversing much of the 5.6% gain in the previous month.
Tesla (TSLA) shares rose 5% after the EV manufacturer said its factory in Berlin was producing 4,000 electric vehicles a week, which puts it ahead of schedule. Shares of Union Pacific Corporation (NYSE:UNP) experienced a 9.9% surge in value after Lance Fritz, the company's CEO, declared his intention to resign this year due to pressure from an activist investor.
Unexpectedly, the number of Americans filing for weekly jobless claims decreased to 192K, as opposed to the expected 200K. In an unexpected turn of events, initial unemployment claims in the United States dropped by 3,000 to 192,000 in the last week, demonstrating a tighter labor market than what was expected of an increase to 200,000.
Pre-market trading for Boeing Co (BA) saw a sharp decline of more than two percent following a Wall Street Journal report detailing the company's decision to suspend 787 Dreamliner Jet deliveries because of a paperwork-related problem.
On Friday, the main stock market indices finished the day down and experienced their largest weekly drops of the year 2023. The S&P 500 dropped by 2.7%, while the Nasdaq Composite decreased by
0. “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/
1. “Nvidia Shares Soar on Earnings Beat, Chip Demand for AI Applications” Investopedia, 23 Feb. 2023, https://www.investopedia.com/nvidia-shares-soar-on-earnings-beat-chip-demand-for-ai-applications-7112912
2. “Nasdaq, S&P, Dow rebound after suffering their worst weekly loss in 2023” msnNOW, 27 Feb. 2023, https://www.msn.com/en-us/money/markets/nasdaq-sandp-dow-rebound-after-suffering-their-worst-weekly-loss-in-2023/ar-AA17ZLQs
3. “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
4. “Nasdaq, S&P, Dow erase gains to trade lower; NVIDIA soars after results” Seeking Alpha, 23 Feb. 2023, https://seekingalpha.com/news/3940061-nasdaq-sp500-dow-jones-stock-market-economic-data-nvidia
5. “Wall Street Might Bounce Back At Open” RTTNews, 27 Feb. 2023, https://www.rttnews.com/3346731/wall-street-might-bounce-back-at-open.aspx
6. “Nasdaq, S&P 500 Futures Rebound In New Trading Week But Rising Bond Yields Remain A Risk – Invesco QQQ Tr” Benzinga, 27 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/31065503/nasdaq-s-p-500-futures-rebound-in-new-trading-week-but-rising-bond-yields-remain-a-risk
7. “U.S. stocks are rising as investors try to brush off last week's losses By Investing.com” Investing.com, 27 Feb. 2023, https://www.investing.com/news/stock-market-news/us-stocks-are-rising-as-investors-try-to-brush-off-last-weeks-losses-3015779
8. “Stocks close higher following worst week of 2023, major indexes are on track to end February with declines: Live updates” CNBC, 26 Feb. 2023, https://www.cnbc.com/2023/02/26/stock-market-futures-open-to-close-news.html
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