Nvidia's Blowout Quarter Leads Wall Street to All-Time Highs

S&P 500 rises 2% and Dow closes above 39K for the first time
By Newser Editors and Wire Services
Posted Feb 22, 2024 3:21 PM CST
Nvidia's Blowout Quarter Leads Wall Street to All-Time Highs
A Nvidia office building is shown in Santa Clara, Calif.   (AP Photo/Jeff Chiu, File)

Nvidia sparked a rally on Wall Street Thursday after the AI chipmaker reported another blowout quarter and led the markets to fresh records.

  • The S&P 500 rose 105 points, or 2.1%, to a record 5,087.
  • The Dow rose 456 points, or 1.1%, to 39,069, the first time the index has passed 39,000, per the Wall Street Journal.
  • The Nasdaq rose 460 points, or 2.9%, to 16,041.

Nividia surged 16% after reporting that its revenue and profit soared in the latest quarter thanks to booming demand for its chips used for artificial intelligence, per the AP. The stock has tripled over the past year thanks to a surge in investor enthusiasm over artificial intelligence. Synopsis, which makes software used to test and develop chips, rose 7.1% after raising its profit forecast. Other chipmakers and companies involved in the chipmaking industry gained ground. Advanced Micro Devices rose 11.4% and Lam Research rose 4.8%. Overnight, Japan's Nikkei 225 surged to an all-time high. Record gains in corporate earnings have enhanced the appeal of shares in Japanese companies, along with the weakness of the Japanese yen against the US dollar.

On the losing end, electric truck and SUV maker Rivian tumbled 26.1% after it reported another loss and issued a weaker-than-expected production outlook. Lucid, another electric vehicle manufacturer, slid 16.1% after it missed Wall Street sales forecast and also gave a weaker production estimate than analysts had called for. Online craft marketplace Etsy fell 8.5% after it missed Wall Street's profit forecast by a wide margin.

(More stock market stories.)

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