Global shares climbed on Thursday, despite Nvidia falling short of investor expectations, and oil prices rebounded after two days of losses. In the U.S., the Dow Jones Industrial Average rose by 0.64%, the S&P 500 gained 0.72%, and the Nasdaq Composite increased by 1.07%. The positive momentum continued in Europe, with stocks rising by 0.75%, fueled by technology shares. The global stocks gauge by MSCI also climbed by 0.28%.
Nvidia reported second-quarter revenue of $30 billion, surpassing analyst estimates, with a third-quarter revenue forecast of $32.5 billion. However, the results failed to meet the high expectations that have contributed to Nvidia’s significant rally in recent months. Despite the strong performance, the stock was down by 3.3%. Chief Investment Officer Mark Malek noted that while Nvidia exceeded expectations, the market was hoping for even more impressive results.
Data from the Commerce Department revealed that the U.S. economy grew by 3.0% in the last quarter, potentially paving the way for the Federal Reserve to begin rate cuts in September. Following the release of the data, the yield on the 10-year U.S. Treasury notes rose by 2.6 basis points to 3.867%. Investors are anticipating a rate cut of at least 25 basis points during the Fed’s September meeting, with a reduced expectation of a 50 bps cut. The personal consumption expenditure price index, a key inflation measure for the Fed, is set to be released on Friday.
The U.S. dollar strengthened following the GDP data release, with the dollar index gaining 0.52% to 101.53. Concurrently, the euro declined by 0.53% to $1.1061. Gold prices continued to rise, with spot gold increasing by 0.51% to $2,514.89 an ounce, nearing another record high. U.S. gold futures also rose by 0.63% to $2,518.30 an ounce. Meanwhile, oil prices increased, benefiting from concerns over Libyan supply disruptions and offsetting a smaller than expected draw in U.S. crude inventories.
Brent crude futures rose by 2.15% to $80.34 a barrel, while U.S. West Texas Intermediate crude futures climbed by the same percentage to $76.39. Overall, the markets remained resilient despite Nvidia’s mixed results, with positive economic data supporting investor sentiment. The anticipation of rate cuts and inflation measures further influenced market dynamics, leading to fluctuations in currencies, gold, and oil prices. Investors are closely monitoring these developments as they position themselves for potential market shifts in the coming days.
