There was optimism when the stock markets opened, but the mood changed quickly. This is how the three major indicators looked at 22:00 Norwegian time:
- The broader Standard & Poor’s 500 index fell 1.2 percent
- The Dow Jones Industrial Average fell 1 percent
- The Nasdaq Technology Index fell 1.8 percent
At the same time that investors’ eyes are on Nvidia stock, there is a lot of excitement associated with the annual economic summit in Jackson Hole, which kicked off tonight. There, the US central bank will hold a summit with other central banks, and the market will look for signals from central bankers who will discuss monetary policy.
Central Bank Governor Jerome Powell will deliver a speech on Friday, and this is where any sign of further rate hikes will be picked up. Recently, “long” US government interest rates, that is, interest on US government bonds with longer maturities, have risen sharply.
At the same time, several headline numbers showing the prospects for growth in the real economy are resilient are showing better than expected.
Interest rate expectations in the US are rising, and fears of a prolonged period of high core inflation have returned. The annual economic summit is held in Wyoming, where top central bankers, economists and government officials will discuss monetary policy.
Shares of artificial intelligence favorite Nvidia rose 0.1% on Wall Street on Thursday.
The computer chip company released second-quarter results Wednesday evening after the trading day ended. The company could generate $13.5 billion in sales in the second quarter, and it reported $16 billion in sales for the current quarter. This is equivalent to NOK 169.5 billion.
— CEO Jensen Huang said Wednesday evening that a new era for data has begun.
At the pre-trade stage, Nvidia’s share was expected to rise by seven to eight percent. Based on the market value of the company’s shares on Wednesday evening, this corresponds to an increase of about NOK 950 billion. It is not far from Equinor’s full market capitalization of NOK 955 billion.
A few hours before the opening of the exchanges, Philip Sessner, Director of X Corporation, ex-Twitter, indicated that strong market capitalization growth is expected.
Demand for advanced data chips for use in artificial intelligence (AI) skyrocketed after OpenAI opened access to the Chat GPT language bot near the end of 2022. The largest technology companies in the US and China have jumped on the AI wave with their own products and services.
As a result of the strong stock market rally, the company has entered the exclusive $1,000 billion club, where Apple, Microsoft, Alphabet, and Amazon already find themselves.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links that lead directly to our pages. Reproduction or other use of all or part of the Content is permitted only with written permission or as permitted by law. For more terms see here.
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