In a positive turn of events, U.S. equity indexes experienced an upward trend following midday Thursday, spurred predominantly by gains in the energy and industrial sectors. This uplifting momentum prevailed despite a notable drop in Nvidia (NVDA) shares post-results, which did not dampen investor confidence across the broader market. The Dow Jones Industrial Average recorded an impressive 1% increase, reaching 41,519.8 after hitting a remarkable 52-week high of 41,577.97 earlier in the trading day.
Additionally, the S&P 500 ascended by 0.8%, closing at 5,638.1, while the Nasdaq Composite enjoyed a 1.1% rise, culminating in a total of 17,746.4. However, real estate and consumer staples showcased a downturn, becoming the only sectors to decline intraday. The resilience of the mainstream indexes is particularly noteworthy, especially against the backdrop of a 3.5% intraday setback in Nvidia's stock price.
A recent note from UBS highlighted that Nvidia's post-market trading response was largely influenced by heightened expectations concerning their guidance, paired with what has been deemed unrealistic goals previously set by the company three months prior regarding the timing of Blackwell volume shipments and anticipated revenues for the year. Wedbush Securities reinforced a bullish outlook for Nvidia, referring to its recent fiscal Q2 performance as a "masterpiece" in the context of the ongoing artificial intelligence (AI) revolution.
This suggests that the AI trade, despite the fluctuations in Nvidia stocks, remains on solid ground, countering any potential risk associated with the recent results. On the macroeconomic front, most U.S. Treasury yields saw an increase, with the 10-year yield rising by 2.2 basis points to 3.86%, reflecting robust macroeconomic data.
Correspondingly, the two-year yield also gained 2.2 basis points, reaching 3.89%. In terms of economic performance, the U.S. gross domestic product (GDP) growth for the second quarter was revised up to 3%, an improvement from the initial estimate of 2.8% and surpassing expectations that suggested no revision according to a survey by Bloomberg.
The GDP for the first quarter had previously risen by 1.4%. Moreover, initial jobless claims in the U.S. decreased to 231,000 last week, a slight decline from the upwardly revised figure of 233,000 from the prior week. This drop fell below the anticipated 232,000, as indicated by another Bloomberg survey.
The four-week moving average also saw a decrease, falling to 231,500 from 236,250, marking a third consecutive week of declines. Turning to corporate news, Best Buy (BBY) experienced a substantial surge in shares, soaring by 15%—the largest gain on the S&P 500—following the announcement of increased fiscal Q2 adjusted earnings along with an upgraded guidance for fiscal 2025.
Similarly, Cooper (COO) saw its shares jump by 12% intraday, marking the second-largest gain on the S&P; this rise was fueled by revelations of higher non-GAAP earnings and revenue for fiscal Q3, alongside increased earnings guidance for fiscal 2024. In stark contrast, Dollar General (DG.US) faced a dramatic setback, with shares plummeting nearly 30% intraday—the steepest decline on the S&P 500.
This downturn was attributed to disappointing fiscal Q2 results that fell short of market expectations, accompanied by a lowered outlook for fiscal 2024. On the commodities front, West Texas Intermediate crude oil witnessed a 1.5% increase, reaching $75.67 per barrel, fueled in part by geopolitical factors affecting supply.
Notably, a report from PVM Oil Associates indicated that oil production in Libya's eastern regions faced significant disruptions due to ongoing conflicts regarding the centralized control of the strife-torn nation's central bank. The disruptions could potentially affect production levels by as much as 1 million barrels per day over the coming weeks, according to estimates from Rapidan Energy Group. In precious metals, gold prices rose by 0.8%, reaching $2,558.51 an ounce, while silver saw a 1% increase, closing at $29.49. To summarize the market dynamics, the following companies played notable roles in the trade today: Best Buy ($BBY), Cooper ($COO), and Dollar General ($DG.US), alongside the influential Nvidia ($NVDA) within the technology sector..