Nvidia’s strong Q1 earnings boost shares, while Dow drops over 200 points amid light trade-war news and rising yields.
In Short:
Nvidia’s first-quarter earnings surpassed expectations with a 69% revenue increase, leading to a slight rise in its shares as traders anticipate stock fluctuations. Meanwhile, U.S. stocks fell, influenced by rising bond yields and ongoing trade negotiations between Canada and the U.S.
Nvidia has reported its first-quarter earnings, which exceeded expectations with a 69% revenue increase compared to last year. As a result, Nvidia’s shares saw a modest rise.
The company’s performance is closely monitored on Wall Street as it provides insight into the artificial intelligence sector. Traders are anticipating significant fluctuations in Nvidia’s stock following this earnings report.
Jason Pride from Glenmede noted that Nvidia’s results could symbolise broader trends in the technology industry.
Strong performance
Meanwhile, U.S. stocks experienced a decline on Wednesday, following a strong performance the previous day. Treasury yields rose, and Japan’s bond market faced volatility after a weak auction, impacting global bond markets.
There was little news about the ongoing trade discussions. Canadian Prime Minister Mark Carney stated that his country is engaged in intensive negotiations with the U.S. regarding a new economic and security deal, indicating a desire to avoid prolonged discussions.
The Dow Jones Industrial Average dropped 0.6%, losing 245 points, while the S&P 500 and Nasdaq Composite both declined by approximately 0.5%. On the prior day, all three major indexes had gained over 1.8%.
Bond yields also rose, with the 10-year yield reaching 4.479%, up from 4.432% the day before. The WSJ Dollar Index saw an increase following its rise on Tuesday.
International stock markets had mixed results, with most Asian indexes falling, except in South Korea, where chip stocks aided a rise in the Kospi. European stocks showed a downward trend as well.
