In the early hours of Wednesday, stocks experienced modest gains as investors processed the quarterly earnings report from artificial intelligence chipmaker Nvidia (NVDA) ahead of the upcoming holiday trading break.
The Nasdaq Composite (^IXIC), dominated by technology stocks, experienced an ascent of approximately 0.7%, with the S&P 500 (^GSPC) posting a gain of roughly 0.4%. Simultaneously, the Dow Jones Industrial Average (^DJI) saw an increase of around 0.3%.
Nvidia, a key player in the AI chip manufacturing sector, exceeded the expectations set by Wall Street in its highly anticipated quarterly earnings. However, the market response was somewhat restrained as the company acknowledged that restrictions on chip exports to China imposed by the United States would impact its results. Although Nvidia’s shares initially dipped post-report, they rebounded by approximately 1% during the volatile premarket trading.
The AI industry’s influence on the market persisted as OpenAI made a surprising announcement. Sam Altman, ousted from the position of CEO just days earlier, was declared to be reinstated. OpenAI, the developer behind ChatGPT, also revealed new additions to its board, including former Treasury Secretary Larry Summers, in an effort to quell internal dissent.
This decision is viewed as a notable victory for Microsoft (MSFT), a key supporter of OpenAI, which actively campaigned for Altman’s reinstatement. Following the announcement, Microsoft’s stock experienced a modest uptick of less than 1%.
Within the realm of commodities, oil prices experienced a decline as a scheduled OPEC+ meeting on output discussions was postponed. West Texas Intermediate (WTI) crude futures saw a drop of over 4%, settling just above $74 per barrel.
In terms of individual stocks, Deere (DE) faced a 6% decline early on Wednesday following a pessimistic profit forecast from the agricultural equipment giant. Deere’s cautionary statement regarding elevated borrowing costs potentially impacting demand echoed a recurring theme in the results of various retailers.
The economic agenda for the day includes reports on weekly jobless claims and consumer sentiment. This comes after the Federal Reserve’s minutes from the latest rate-setting meeting on Tuesday failed to significantly influence the ongoing debate about the next steps in interest rates.
As the Thanksgiving Day holiday approaches on Thursday, with markets closed, and a shortened session scheduled for Friday, trading activity is anticipated to wind down, potentially contributing to muted market movements during the latter part of the week.
In conclusion, the early Wednesday trading session witnessed stocks making modest gains, reflecting a delicate equilibrium between positive earnings from Nvidia, ongoing AI-related developments, and broader economic factors as investors prepared for the Thanksgiving holiday break.
Source: Yahoo Finance
