2023-11-22 21:41:07
New York (AFP) – The New York Stock Exchange ended higher on Wednesday, on a well-disposed market, which remained favorably oriented and was not overly moved by the nuanced communication from the semiconductor giant Nvidia.
Published on: 11/22/2023 – 10:41 p.m.
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The Dow Jones gained 0.53%, the Nasdaq index gained 0.46% and the broader S&P 500 index gained 0.41%.
“When there is not much volume and not much information either, the safest thing is to expect the market to go up. And that is what happened,” commented Interactive Brokers analyst Steve Sosnick.
A number of operators were in fact missing on the eve of the Thanksgiving holiday in the United States, which limited trade.
“The market is going up right now and it wanted to go up today,” said Steve Sosnick. “And while the Nvidia news wasn’t enough to move the stock forward, it was deemed good enough to move the place forward, as a whole.”
The manufacturer of graphics cards, essential for the creation of interfaces such as the generative artificial intelligence (AI) platform ChatGPT, once more largely exceeded market projections during its third financial quarter and published forecasts well above those of analysts for the current period.
For Derren Nathan, analyst at Hargreaves Lansdown, investors are “taking a break” on Nvidia (-2.46%), the time to understand the consequences for the company of the new export restrictions to China imposed by the American government.
On Tuesday, during the conference call to present the results, Nvidia’s financial director, Colette Kress, admitted that these restrictions would have “a negative effect” on the group’s turnover in China, while affirming that it would be “more than offset by strong growth in other regions.”
“If (Nvidia’s) results had been in line with expectations, the stock would have really had a very bad day,” Steve Sosnick put things into perspective. Nvidia shares rose 25% between the end of October and Monday.
For this analyst, Wall Street was also encouraged by another flagship AI stock, Microsoft (+1.28%), in the green following the announcement, overnight from Tuesday to Wednesday, of the return of Sam Altman at the head of OpenAI.
The Redmond (Washington State) firm owns 49% of the creator of the ChatGPT generative artificial intelligence interface.
Other stocks whose activity is closely linked to artificial intelligence were sought following, such as C3 AI (+1.02%), publisher of software integrating AI, or Meta (+1.34%), which developed its own generative AI model.
The other big names in electronic chips, whether AMD (+2.82%) or Qualcomm (+0.38%), benefited from the decline of their rival.
Wall Street also benefited from an improvement on several fronts, with the stabilization of bond rates and the decline in oil prices.
The yield on 10-year US government bonds stood at 4.40%, compared to 4.39% the day before at closing.
On the stock market, the manufacturer of tractors and construction equipment Deere slipped (-3.11%), despite quarterly results well above expectations. The Moline (Illinois) group was sanctioned for its profit forecasts for its 2024 financial year, during which it anticipates a normalization of sales.
© 2023 AFP
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