Global stock markets saw a slight uptick on Thursday, despite initial investor disappointment following Nvidia’s earnings report. The AI giant’s results fell short of the high expectations that had driven a significant rally in its stock, causing a notable dip. Meanwhile, oil prices rebounded after two days of declines, supported by disruptions in Libyan oil supply.
In the U.S., the Dow Jones Industrial Average reached a new record high, closing 0.59% higher at 41,335.05. The S&P 500 ended the day flat at 5,591.96, just below its July record close, while the Nasdaq Composite fell by 0.23% to 17,516.43. European stocks followed suit, with a 0.76% rise driven by gains in the technology sector. The MSCI’s global stock gauge inched up 0.04% to 827.62.
Nvidia’s earnings report, which surpassed analyst predictions with a second-quarter revenue of $30 billion and a third-quarter forecast of $32.5 billion, nonetheless failed to meet sky-high investor expectations. This shortfall led to a 6.4% drop in Nvidia’s stock, highlighting the market’s sensitivity to the AI sector’s performance. Despite this, the company’s results suggest that the demand for artificial intelligence remains robust.
Economic data from the U.S. Commerce Department showed that the economy grew at an annualized rate of 3.0% last quarter, raising hopes that the Federal Reserve might have room to cut interest rates in September. The yield on the benchmark U.S. 10-year Treasury notes rose slightly by 2.4 basis points to 3.865%, reflecting market expectations for a potential rate cut.
Market participants are now turning their attention to the upcoming personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, due for release on Friday. This data could further influence the Fed’s decisions in the coming months.
In currency markets, the U.S. dollar gained strength following the GDP data, with the dollar index rising by 0.36% to 101.37. The euro slipped by 0.39% to $1.1077 in response.
Gold prices continued their upward trend, edging closer to a new record high. Spot gold increased by 0.79% to $2,522.08 per ounce, while U.S. gold futures climbed 0.9% to settle at $2,560.3 per ounce.
Oil markets saw a boost as well, with Brent crude futures closing up 1.64% at $79.94 a barrel, and U.S. crude rising by 1.87% to $75.91 a barrel. The gains were driven by concerns over Libyan oil supply disruptions, which offset a smaller-than-expected draw in U.S. crude inventories.
