NEW YORK, Nov 19 ― Both the S&P 500 and the Nasdaq eked out record closing highs after a topsy-turvy yesterday on Wall Street, as investors focused on upbeat retail and technology earnings which outshone hawkish inflation comments from a Federal Reserve policymaker.
Both the S&P and Nasdaq had rebounded by late morning though, with the latter supported by Nvidia. The chipmaker jumped 8.2 per cent after beating quarterly estimates and forecasting strong fourth-quarter revenue. Macy's Inc surged 21.1 per cent, its largest one-day percentage gain in decades, after it raised its annual earnings guidance and flagged plans for a potential spinoff of its ecommerce division.The S&P 500 retailing index gained 2.8 per cent to break its record peak for the third session this week, as investors viewed the earnings as a signal of robust consumer demand that has persevered through rising inflation, and that retailers were set for a strong holiday season.
“We definitely hit overbought territory and settling in is going to be healthy for us to take the next leg up,” said Eric Metz, chief investment officer of Chicago-based SpiderRock Advisors. The Dow lagged its peers on steep losses in network gear maker Cisco, which tumbled 5.5 per cent after it forecast current-quarter revenue below expectations due to supply chain shortages and delays.