Stock Market Today: Dow Jones Slides After Jobless Claims; Nvidia Surges On Earnings
Jobless Spike Dips Dow; Nvidia Hits $1K: Why?
The Dow Jones Industrial Average experienced a decline, influenced by new unemployment claims data, while Nvidia's stock soared following impressive earnings, surpassing the $1,000 mark for the first time. This surge in Nvidia's shares contributed to gains in other stock indexes.
While the Dow fell by 0.5%, the S&P 500 saw a slight increase of 0.1%, and the Nasdaq composite grew by 0.5%. The overall market sentiment was also affected by a slight dip in the 10-year Treasury yield and a rebound in oil prices. Nvidia's strong performance stood out, particularly after announcing a significant earnings beat and a 10-for-1 stock split.
How did Nvidia's fiscal first-quarter earnings surpass Wall Street's expectations, and what was their guidance for the current period?
Nvidia surpassed Wall Street's expectations for its fiscal first-quarter earnings, reporting a record revenue of $26.04 billion, up 18% from the previous quarter and 262% from the same period last year. The company's net income reached $14.88 billion, compared to $2.04 billion in the year-ago period. The strong results were driven by the increasing demand for Nvidia's advanced computing chips required for developing and deploying artificial intelligence applications.
For the current period, Nvidia guided higher than Wall Street's views, expecting sales of $28 billion in the second quarter of fiscal 2025. The company also announced a ten-for-one forward stock split to make stock ownership more accessible to employees and investors.
What specific factors contributed to the Dow Jones Industrial Average dropping on Thursday morning?
The Dow Jones Industrial Average dropped on Thursday morning due to a combination of factors. One of the main factors was the reaction to the initial unemployment claims data released by the Labor Department. Additionally, the Dow was influenced by the performance of individual stocks within the index, such as Nvidia, which surged above the 1,000 price level following its strong earnings report. These factors contributed to the decline of the Dow Jones Industrial Average on Thursday morning.