S&P 500 reaches 6,500 as Nvidia drives market

In Short:
– S&P 500 hit 6,500 as Nvidia reported strong earnings amid AI boom; index rose 0.4%.
– Nvidia’s revenue increased by 56%; analysts raised price targets, improving sentiment in the chipmaker sector.

The S&P 500 reached 6,500 for the first time on Thursday, boosted by Nvidia’s strong earnings report. According to Reuters, traders viewed the results as a sign of the ongoing AI boom.

The index was last 0.4% higher, hitting an all-time intraday peak, while the Nasdaq rose 0.6% and the Dow Jones gained 81 points.Nvidia, comprising about 8% of the S&P 500, reported a 56% increase in revenue, surpassing Wall Street’s estimates.

However, some concerns emerged regarding slightly lower-than-expected revenue for its data centre business and guidance of $54 billion for the upcoming quarter, which was only above the $53.1 billion consensus.

Initial declines in Nvidia’s stock reversed by market open, though it remained about 0.5% lower.

Positive Outlook

Analysts’ sentiment towards Nvidia has become more bullish post-report, leading firms like JPMorgan and Citi to raise price targets. Other chipmakers, including Broadcom and Micron Technology, also saw gains.

Meanwhile, Snowflake’s shares surged 22% after better-than-expected results.

The market recently celebrated strong GDP growth at 3.3%, exceeding forecasts. Attention now turns to a forthcoming inflation report on Friday, where economists anticipate a 0.2% rise for July.