The S&P 500 and the Nasdaq slipped on Thursday, as concerns over a potential artificial intelligence (AI) bubble continue to weigh despite Nvidia’s stellar earnings.
As of 9:35 am Eastern Time, the S&P 500 slipped 0.1% and the Nasdaq Composite was 0.4% lower. The Dow Jones Industrial Average was up 0.5%.
At the opening bell, the Dow Jones Industrial Average rose 62.4 points, or 0.13%, to 49,544.58. The S&P 500 fell 1.4 points, or 0.02%, to 6,944.74, while the Nasdaq Composite dropped 51.5 points, or 0.22%, to 23,100.583.
Nvidia Corp, currently leading the global artificial intelligence revolution, announced fourth quarter earnings, surpassing market expectations. The prominent chipmaker also provided a first quarter forecast that significantly exceeded average analyst projections, following a remarkable 73% increase in its fourth quarter revenue.
During an earnings call on Wednesday, Nvidia Chief Executive Officer Jensen Huang addressed industry skepticism regarding sustainable growth. He argued that the perceived risks are overstated because clients are already generating significant returns from their newly integrated computing capabilities.
“You need compute capacity, and that translates directly to growth, and that translates directly to revenues,” Huang said. “I’m confident their cash flows are growing.”
On the economic data front, a report showed that the number of US jobless claims rose last week.
In the bond market, the yield on the 10-year Treasury fell to 4.03% from 4.05% late on Wednesday.
Bullion Market
Gold prices declined on Thursday as investors focused on the third round of US-Iran nuclear talks in Geneva.
At 9:19 am ET (1419 GMT), spot gold edged down 0.1% at $5,165.77 per ounce. US gold futures for April delivery were down 0.8% at $5,182.10.
Elsewhere, spot silver shed 2.8% to $86.94 per ounce. Spot platinum slid 1.6% to $2,249.40 per ounce, while palladium lost 1.6% to $1,766.95.
