The Nasdaq 100 outperformed as a strong outlook from Nvidia gave fresh impetus to the artificial intelligence hype that’s boosting tech stocks this year.
The S&P 500 advanced for a second day. Nvidia hit an all-time high, extending this year’s gains. Treasury yields increased after mixed economic data.
Nvidia’s update, along with the AI stock frenzy, are punctuating a week that’s seen broad equity-market gains and renewed risk taking by investors.
While worries about rising bond yields dominated the conversation last week, megacap tech is back in focus as investors gauge whether their earnings can power a stock market that’s been treading water for the past month.
“Nvidia has shown that the demand for AI technology remains strong despite what is going on elsewhere,” said Stuart Cole, chief macro economist at Equiti Capital in London.
“The potential remains for equity markets to soften again. But I can easily see AI-related stocks, like Nvidia, and tech shares probably more generally, being seen as a safe haven in the equity world.”
Next in focus will be the gathering of top central bankers at Jackson Hole, with Federal Reserve Chair Jerome Powell’s speech due Friday.
Former Fed Bank of St. Louis President James Bullard said a reaccelerating U.S. economy could prompt higher rates.
In other corporate news, Snowflake rose after the software company reported earnings that beat expectations.
Boeing and its biggest supplier, Spirit AeroSystems, fell after the plane maker disclosed improperly drilled holes in a component that helps maintain cabin pressure within the 737 Max jet.
Dollar Tree dropped as its outlook fell short of analyst estimates.
