2023-11-22 14:31:51
The New York Stock Exchange opened higher on Wednesday, attracted by the resistance of semiconductor giant Nvidia, which avoided a fall despite concerns regarding its activity in China.
Around 2:55 p.m. GMT, the Dow Jones gained 0.33%, the Nasdaq index appreciated by 0.49% and the broader S&P 500 index gained 0.34%.
Wall Street was expecting a lot from the results of the big winner of the AI (artificial intelligence) wave, Nvidia, published Tuesday following the stock market.
But the reaction was negative, the title dropping 3.38% in the first exchanges.
The manufacturer of graphics cards, essential for the creation of interfaces like ChatGPT, once once more largely surpassed market projections during its third financial quarter and published forecasts well above those of analysts for the current period.
For Derren Nathan, of Hargreaves Lansdown, investors are “taking a break” on Nvidia, the time to understand the consequences for the company of the new export restrictions to China imposed by the American government.
Tuesday, during the conference call to present the results, the financial director, Colette Kress, admitted that they would have “a negative effect” on the group’s turnover in China, while affirming that it would be “more only offset by strong growth in other regions.
“The fact that the stock refuses to decline” significantly, despite the sequence of the last three weeks, which saw it jump by more than 22%, “shows that there is still a huge demand for Nvidia”, deciphered Adam Sahran of 50 Park Investments.
The other big names in electronic chips, whether AMD (+3.52%), Intel (+1.13%) or Qualcomm (+1.17%), benefited from the decline of their rival.
Among the other stocks bearing the “AI” label, Microsoft (+0.94%) regained its height following the announcement, on the night of 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 the software publisher integrating AI C3 AI (+0.86%) or Meta (+0.82%), which developed its own generative AI model
Wall Street also benefited from a clearing on several fronts, with the easing of bond rates and the marked decline in oil prices. “It helps a lot,” said Adam Sarhan.
The yield on 10-year US government bonds stood at 4.37%, compared to 4.39% the day before at closing.
On the stock market, the manufacturer of tractors and construction equipment Deere plunged (-6.12%), 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.
Oil stocks were sliding, in step with black gold prices, following an agreement between Israel and Hamas and the announcement of the postponement until November 30 of the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies of the OPEC+ agreement.
ExxonMobil (-1.40%), Chevron (-1.33%) and ConocoPhillips (-2.09%) were all in the red.
Computer manufacturer HP fell (-2.47%) following slightly lowering its net profit estimate for its 2024 financial year (which starts in November).
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