Nvidia Stock Above $1,000 on Record Profits, S&P Down on Higher Yields
The Nvidia stock price jumped above $1,000 today, finally breaking that major level and the resistance around $970 after record earnings,
The Nvidia stock price jumped above $1,000 today, finally breaking that major level and the resistance around $970 after record earnings, which were released yesterday after the markets closed. That pulled higher major indices such as the S&P 500which printed a new record high, and the Dow Jones, but they reversed lower eventually as Treasury yields surged higher following the US economic data.
Nvidia’s recent earnings announcement exceeded expectations, leading to a substantial rise in its stock price. After reporting higher-than-expected results, Nvidia’s stock surged nearly $100, or 11%, reaching $1,055 initially. This marks the largest increase since the last earnings report in February. The market had anticipated an 8% move before the announcement, but today’s price action has far exceeded those forecasts, setting a new record high for Nvidia’s shares.
The momentum from these earnings typically persists for a few days before stabilizing, as observed in previous quarters. Despite the positive momentum from Nvidia, the broader market faced headwinds due to rising US interest rates. The S&P 500 index initially surged following Nvidia’s announcement but fell as the session progressed, weighed down by increasing yields. The two-year and ten-year US Treasury yields rose by 5.5 and 6 basis points, respectively. These higher rates offset the gains in the S&P 500, which had reached new all-time highs earlier in the session.
Nvidia Stock Chart Daily – The Bullish Break Finally Happened
Major indices by the close of trading:
- The S&P 500 index dropped 40 points, or 0.7%, to 5,267
- The NASDAQ index fell 66 points, or 0.4%, to 16,736
- The Dow Industrial Average declined by 610 points, or 1.5%, to 39,065
Market Summary
- Nvidia’s Earnings Impact: Nvidia’s impressive earnings report led to a significant spike in its stock price, reaching record highs.
- Interest Rate Concerns: Rising US interest rates dampened broader market gains, particularly in the S&P 500 and Dow Industrial Average.
- PMI Data Influence: Stronger-than-expected S&P Global PMI data for May contributed to the rise in yields, impacting stock performance.
- Market Reaction: Despite early gains, inflation worries and higher yields led to a mixed performance, with the NASDAQ managing to stay positive while the S&P 500 and Dow ended the day in negative territory.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Save