Nvidia shares jumped 9.32 per cent to close above the US$1,000 per share mark for the first time and helped boost the Nasdaq and S&P 500 to intraday records in the early stages of trading after the AI chip company forecast quarterly revenue above estimates and announced a stock split.
“It maybe speaks to the fact that people are now positioned for disappointing growth data, slower inflation data, rate cuts, and this morning... it caught people wrong footed,” said Brian Nick Senior Investment Strategist at The Macro Institute in New York.
The rally in equities to record highs this month has been fuelled in part by AI optimism, a solid earnings season and renewed hopes for rate cuts by the Fed this year. Nvidia shares are up about 110 per cent this year after surging roughly 240 per cent in 2023. DuPont announced plans to split into three publicly traded companies. Shares of the US conglomerate ended up 0.48 per cent but were sharply off earlier levels.