5 days ago
World Markets Mostly Gain as Nvidia Propels US Stocks Higher
Stock markets in Asia and Europe were mostly higher after US technology shares rose.
Nvidia’s stock jumped because its profits and sales were better than experts expected.
The company also predicted strong future demand for chips used in artificial-intelligence projects.
Salesforce shares rose sharply after the company reported strong results and expanded its partnership with Anthropic.
Some investors believe AI businesses will keep growing and making useful profits.
Other investors worry that AI stocks have become too expensive and that demand could weaken.
Some US retailers fell because inflation may be making shoppers more careful.
Oil prices moved slightly lower while investors watched events involving Iran and the Strait of Hormuz.
Markets were also waiting for a speech from Federal Reserve Chairman Kevin Warsh.
Asian and European shares were mostly higher after Nvidia and other technology stocks lifted Wall Street.
Nvidia rose 8.7% after beating quarterly expectations and forecasting strong demand for artificial-intelligence chips.
Salesforce jumped 22.6% after reporting a strong quarter, raising its annual revenue outlook and expanding its Anthropic partnership.
Investors remained divided over whether AI-related shares have risen too far and whether future profits will match expectations.
Oil prices slipped as markets monitored the Iran war, Strait of Hormuz shipping and an upcoming speech by Federal Reserve Chairman Kevin Warsh.
- Who
- Investors, Nvidia, Salesforce, Federal Reserve Chairman Kevin Warsh and major retailers were central to the report.
- What
- World shares were mostly higher after a technology-led rise in US stocks, while oil prices declined slightly.
- Where
- Markets in Asia, Europe and the United States; oil trading was affected by uncertainty around the Strait of Hormuz.
- When
- Friday, after gains on Wall Street Thursday.
- Why
- Nvidia’s strong results and outlook supported technology shares, while investors also weighed AI-stock valuations, inflation, economic concerns, oil-market uncertainty and Federal Reserve policy.
AI Optimists
AI Skeptics
AI demand and profitability
AI Optimists
Nvidia’s stronger-than-expected results and forecasts suggest demand remains strong for chips powering AI projects. CEO Jensen Huang said AI is doing useful, productive and profitable work.
AI Skeptics
AI-related shares face concerns that they have risen too far and that chip demand could weaken if the AI revolution produces less profit than expected.
Salesforce’s AI strategy
AI Optimists
Salesforce said AI helped produce one of its best quarters in history, raised its annual revenue outlook and expanded its partnership with Anthropic’s Claude chatbot.
AI Skeptics
Salesforce’s stock had previously struggled because of worries that AI-powered competitors could eventually take customers from Salesforce and other software companies.
Effects of inflation on consumers
AI Optimists
Dollar stores could benefit if higher-income households seek cheaper places to shop; Dollar General rose after reporting stronger-than-expected profit.
AI Skeptics
High inflation and economic discouragement may be stretching shoppers, contributing to a 4.4% fall in Best Buy; Dollar Tree also fell after its revenue-outlook midpoint missed analysts’ expectations.
Key facts
- Nvidia
- Rose 8.7% after exceeding analysts’ quarterly profit and revenue expectations and giving a stronger revenue-growth forecast.
- Salesforce
- Jumped 22.6%, its best day in six years, after reporting a strong quarter and raising its full-year revenue forecast.
- Wall Street
- The S&P 500 rose 0.7%, the Dow Jones Industrial Average gained 0.2% and the Nasdaq composite climbed 1.6% Thursday.
- Asian markets
- Reported moves varied by source: the Nikkei 225 rose 0.4% to 66,405.56 or 0.8% to 66,682.88, while the Kospi fell 1.8% to 6,788.88 or 1% to 6,841.50.
- European markets
- The DAX rose 0.6%, the CAC 40 gained 1.1% and the FTSE 100 added 0.2% in early trading.
- Oil prices
- Brent crude fell 0.4% to $88.13 or 0.3% to $88.24 per barrel; US crude fell 0.6% to $83.08 or 0.4% to $83.17.
- Retail shares
- Best Buy fell 4.4%, Dollar General rose 2.5% and Dollar Tree declined 3.9%.
Quotes
Jensen Huang
Chief executive officer of Nvidia
“AI has reached its inflexion point. It’s doing useful work. Its tokens are productive and profitable.”
deccanchronicle.com
thehansindia.com
Sources
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