Nasdaq Surges As Tech Stocks Rally Ahead Of Nvidia Earnings
Following the mixed performance seen in the previous session, stocks have moved mostly higher in morning trading on Wednesday. The major averages have all moved to the upside, with the tech-heavy Nasdaq leading the advance.
Currently, the Nasdaq is up 151.01 points or 1.1 percent at 13,656.88 and the S&P 500 is up 26.71 points or 0.6 percent at 4,414.26. The narrower Dow is posting a more modest gain, up 60.75 points or 0.2 percent at 34,349.58.
The jump by the Nasdaq comes as tech stocks are moving notably higher ahead of earnings news from Nvidia (NVDA), with the chipmaker due to release its fiscal second quarter results after the close of trading.
The results from Nvidia, a leader in the AI space, could have a significant impact on the outlook for the technology sector.
A steep drop by bond yields has also generated some buying interest, as the ten-year yield is pulling back further off highest levels in well over fifteen years.
Traders continue to look ahead to the highly anticipated economic symposium in Jackson Hole, Wyoming, which kicks off on Thursday.
The symposium will feature meetings by global central bank leaders as well as a speech by Federal Reserve Chair Jerome Powell that could impact the outlook for interest rates.
Meanwhile, the more modest gain by the Dow comes as shares of Nike (NKE) are moving sharply lower after athletic apparel and footwear retailer Foot Locker (FL) slashed its full-year guidance.
In U.S. economic news, the Commerce Department released a report showing new home sales rebounded by much more than expected in the month of July.
The Commerce Department said new home sales spiked by 4.4 percent to an annual rate of 714,000 in July after tumbling by 2.8 percent to a revised rate of 684,000 in June.
Economists had expected new home sales to jump by 1.2 percent to a rate of 705,000 from the 697,000 originally reported for the previous month.
With the much bigger than expected increase, new home sales reached their highest annual rate since hitting 773,000 in February 2022.
Sector News
Gold stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 2.9 percent.
The rally by gold stocks comes amid a sharp increase by the price of the precious metal, with gold for December delivery jumping $21 to $1,947 an ounce.
Housing stocks are also seeing considerable strength following the upbeat new home sales data, resulting in a 1.5 percent advance by the Philadelphia Housing Sector Index.
Semiconductor, software and computer hardware stocks have also moved notably higher, contributing to the surge by the tech-heavy Nasdaq.
On the other hand, oil and natural gas stocks are seeing significant weakness amid steep drops by the prices of their associated commodities.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index rose by 0.5 percent, while China’s Shanghai Composite Index slumped by 1.3 percent.
The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index is up by 0.7 percent, the French CAC 40 Index and the German DAX Index are both down by 0.1 percent.
In the bond market, treasuries have moved sharply higher, adding to the modest gains seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 10.1 basis points at 4.227 percent.
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