S&P 500, Dow jump to record closes as Nvidia sparks AI frenzy

by David French, Reuters

The S&P 500 and Dow Jones Industrial Average both surged to close at record highs on Thursday, powered by investors piling into growth and technology stocks the day after artificial intelligence poster child Nvidia’s bumper earnings and outlook.

Nvidia’s (NVDA.O), shares leaped after the chip designer forecast a roughly three-fold surge in first-quarter revenue on strong demand for its AI chips and beat expectations for fourth-quarter revenue.

The company’s earnings were a major test for the AI-fueled rally on Wall Street that first pushed the S&P 500 (.SPX) above the 5,000 point mark earlier this month. Some analysts had cautioned that disappointing results could spark a steep selloff among technology stocks.

Instead, the S&P 500 (.SPX) ended at a record high, as did the Dow Jones Industrials (.DJI) which closed above 39,000 for the first time.

 

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