On the 22nd (local time), the U.S. stock market rallied strongly as AI-related stocks rallied due to the surprise earnings announcement of U.S. semiconductor company Nvidia.
The Dow Jones Industrial Average closed above 39,000 for the first time, and the Standard & Poor’s (S&P) 500 Index recorded the most significant increase since January of last year, setting a new all-time high.
On this day, the Dow Jones closed at 39,069.11, up 456.87 points (1.18%) from the previous day. This is the first time the Dow has risen above 39,000.
The S&P 500 Index closed at 5,087.03, up 105.23 points (2.11%) from the previous day, breaking the record for the highest ever in 8 trading days. The index’s increase was the largest since January 6th of last year (2.3%).
The tech-centric Nasdaq Index closed at 16,041.62, up 460.75 points (2.96%) from the previous day, putting it on the verge of breaking the November 2021 high.
The announcement of Nvidia’s Q4 2023 fiscal year earnings, which exceeded market expectations after the market closed the previous day, led to the resumption of the U.S. stock market rally. Nvidia surged 16.40% in a single day, reclaiming 3rd place in market capitalization, surpassing Alphabet, Google’s parent company, and Amazon.
Powered by the Nvidia-led boom, AMD (10.69%) also surged by over 10%, and other semiconductor-related stocks such as Broadcom (6.31%), Marvell Technology (6.64%), ASML (4.81%), Applied Materials (4.94%), and Micron (5.42%) also showed a sharp rise.
In addition, large-cap stocks such as Meta (3.87%) and Amazon (3.55%) also led the stock market rally on this day.
Experts believe that Nvidia’s optimistic outlook is reigniting a boom in AI-related stocks.
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