Wall Street key stock indices opened higher on Wednesday ahead of Nvidia’s earnings.
At the opening bell, the Dow Jones Industrial Average rose 183.1 points, or 0.37%, to 49,357.63. The S&P 500 rose 25.1 points, or 0.36%, to 6,915.15, while the Nasdaq Composite rose 141.3 points, or 0.62%, to 23,005.008.
Nvidia will report its fourth quarter results after the market closing hours. Its chips are at the center of the AI frenzy, and it’s become the most influential stock in the US market because it’s the most valuable. Its shares were trading 1.6% higher. Analysts are expecting another blowout report, with estimates for Nvidia’s profit to surge nearly 70% from a year earlier to $37.52 billion.
Nvidia’s profit reports have become a bellwether for the market, not only because of how big the company has become in size but also because of how influential AI has become over the market’s moves. In past years, the AI frenzy helped stocks run to record after record amid hopes that it would mean higher productivity for the economy and bigger profits.
Cava Group stock jumped 18.6% after the fast-casual Mediterranean restaurant chain reported better quarterly profit and revenue than analysts expected. Its revenue for a fiscal year also topped USD 1 billion for the first time, up 22.5 per cent from the year earlier.
Axon Enterprise shares rose 16.5% after the firm delivered bigger profit and revenue than Wall Street expected.
Lowe’s Companies stock dropped 4.2% after the home improvement retailer forecast annual sales and profit below estimates.
GoDaddy shares slumped 15.8% after the internet services provider forecast annual revenue below expectations.
First Solar stock slipped 12.9% after the firm forecast annual sales below estimates.
