S&P 500, Dow close slightly up; Nvidia gains after the bell

economictimes.indiatimes.com:

Dow Jones industrials eked out small gains on Wednesday, while the Nasdaq closed lower for a third straight session as investors awaited the release of Nvidia's earnings that could determine near-term momentum for equities.

After the closing bell, Nvidia shares surged 6% after it forecast fiscal first-quarter revenue above estimates on robust demand for its chips that dominate the market for artificial intelligence (AI).

During the session, Nvidia shares fell 2.85%, adding to the previous day's decline of more than 4% for the chip designer.

Nvidia shares have soared nearly 40% this year, making it the biggest gainer on the S&P 500 after a leap of almost 240% in 2023. Analysts had cautioned that its lofty valuation could make the stock vulnerable to a sharp pullback if the company delivered anything short of a blowout report.

«It's been driven by excitement and enthusiasm around AI and of course the AI darling in the room is Nvidia,» said Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah.

«Markets are looking at Nvidia with a little bit of anxiety, maybe… we need to see a good report from the leader in the space and that leader is Nvidia.»

The S&P 500 climbed 0.13% to end the session at 4,981.80 points. The Nasdaq declined 0.32% to 15,580.87 points, while the Dow Jones Industrial Average rose 0.13% to 38,612.24 points.

Minutes from the Federal Reserve's January meeting showed most policymakers were concerned about risks of cutting interest rates too soon, with broad