The US stocks finished the session mostly higher on Thursday, 25 May 2023, with the Dow closing slightly below unchanged line, while the S&P500 and NASDAQ indexes settled in green territory on the back of strength in the tech sector after chipmaker Nvidia posted solid quarterly results and stronger-than-expected revenue forecast.
Meanwhile, traders kept an eye on any developments in the U.S. debt ceiling negotiations amid lingering concerns about a potential default. Reflecting the default concerns, Fitch Ratings placed the United States AAA credit on rating watch negative, signaling downside risks to U.S. creditworthiness.
At the close of trade, the Dow Jones Industrial Average index declined 35.27 points, or 0.11%, to 32,764.65. The S&P500 index increased by 36.04 points, or 0.88%, to 4,151.28. The tech-heavy Nasdaq Composite Index increased 213.93 points, or 1.71%, to 12,698.09.
Total 5 of 11 sectors ended higher along with S&P500 index. Information technology was top performing sector, rising 4.45%. Energy was bottom performing sector, falling 1.9%.
Shares of technology company spurted after US technology major Nvidia reported solid quarterly results and stronger-than-expected revenue forecast. Nvidia Corp soared 24% to a record high close after the worlds most valuable chipmaker forecast quarterly revenue 50% higher than estimates and said it was ramping up supply to meet demand for its artificial-intelligence (AI) chips. Heavyweight AI players Microsoft Corp and Alphabet Inc rose 3.9% and 2.1%, respectively. Advanced Micro Devices Inc jumped about 11%, Micron Technology Inc added 4.6% and Broadcom Inc climbed more than 7%.
ECONOMIC NEWS: The Commerce Department said gross domestic product climbed by 1.3% in the first quarter compared to the previously estimated 1.1% increase.
A separate report released by the Labor Department showed initial jobless claims crept up to 229,000 in the week ended May 20th, an increase of 4,000 from the previous weeks revised level of 225,000.
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