Wall Street closes higher ahead of Nvidia earnings
U.S. stocks ended a volatile session higher overnight, rebounding from recent losses as technology stocks rose ahead of Nvidia’s quarterly results.
The indexes briefly pared their gains after minutes from the Fed’s last meeting showed policymakers had warned that lower borrowing costs could undermine the fight against inflation.
The Fed cut interest rates by a quarter point at each of its meetings in September and October.
Concerns about a cooling labor market persisted ahead of the September US jobs report due on Thursday following the record-long US government shutdown.
The U.S. Bureau of Labor Statistics said it will not release its October employment report, instead combining that month’s nonfarm payrolls reports with its November report.
Nvidia’s shares gained after the market closed, seen as a test of the AI-fueled rally that has propelled the market to record highs this year.
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, said the stock was “almost guaranteed to be volatile” following the report.
“When you’re the largest company, you’re kind of at the forefront, and it often doesn’t make sense how the stock will react in the short term,” he said.
Dow Jones Industrial Average increased by 47.03 points (0.10 percent) to 46,138.77 points, S&P 500 index increased by 24.87 points (0.38 percent) to 6,642.19 points and Nasdaq Composite increased by 131.38 points (0.59 percent) to 22,564.23 points.
Investors are worried about how companies can make money from their massive investments in artificial intelligence.
Options data from analytics firm Option Research & Technology Services (ORATS) showed an implied move for Nvidia shares of about seven percent in either direction following the results.
Among the decliners, Target shares fell after the retailer reported a larger-than-expected drop in quarterly sales as cash-strapped U.S. consumers pulled back on discretionary spending.
