Nvidia's 10% Leap Propels Tech Indexes To Record Highs; Blue Chips, Small Caps Slip: What's Driving Markets Thursday?

Stronger-than-expected quarterly results and upbeat revenue guidance from Nvidia Corp. sparked a renewed surge in tech stocks on Thursday, as traders continue to exhibit bullish sentiment toward the rapidly expanding AI industry.

The chipmaker giant’s stock soared over 10% to $1,051 per share during midday trading in New York, boosting its market value by an astonishing $277 billion in a single session.

The tech-heavy Nasdaq 100 reached 18,907 points in early trading, setting a new all-time high. Similarly, the S&P 500 hit a record high of 5,341 points before paring gains as other sectors lagged behind tech.

The semiconductor sector clearly outperformed, with the VanEck Semiconductor ETF SMH rising 3%. Besides Nvidia, Synopsys Inc. SNPS, ASML Holding N.V. ASML, and Taiwan Semiconductor Manufacturing Company Ltd. TSM saw significant gains, up 4.2%, 3.4%, and 2.6%, respectively.

However, broader market sentiment turned more cautious as S&P Global reported that although U.S. private sector activity grew at the fastest pace in nearly two years, input prices accelerated in May, reigniting inflation concerns.

Treasury yields climbed higher, with the rate-sensitive 2-year yield rising 6 basis points to 4.97%, nearing its highest close since May 1. Long-term yields also increased, with the 30-year yield up 5 basis points to 4.60%, pushing the iShares 20+ Year Treasury Bond ETF TLT down 0.8%.

Blue-chip stocks fell 0.7%, on track for their worst session since late April. Small-cap stocks also declined, down 0.5%, extending losses following a 0.8% drop on Wednesday.

Gold prices dropped 1.4% to $2,344 per ounce, following a 1.7% decline on Wednesday.

Thursday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %chg
Nasdaq 100	18,847.70	0.8%
S&P 500	5,321.33	0.3%
Russell 2000	2,072.66	-0.4%
Dow Jones	39,410.72	-0.7%

The SPDR S&P 500 ETF Trust SPY was 0.3% higher to $531.23, the SPDR Dow Jones Industrial Average DIA fell 0.6% to $394.24 and the tech-heavy Invesco QQQ Trust QQQ was up 0.8% to $459.10, according to Benzinga Pro data. 

Among sectors, the Technology Select Sector SPDR Fund XLK outperformed, up by 0.5%. The Utilities Select Sector SPDR Fund XLU lagged behind, dropping 0.8%.

Thursday’s Stock Movers

• e.l.f. Beauty Inc. ELF rocketed 21% after smashing the Street’s estimates last quarter and following a bullish note from Bank of America Securities.
• Other companies reacting to earnings were Snowflake Inc. SNOW down 2%, V.F. Corp. VFC down 3.5%, EnerSys ENS up 11%, BBB Foods Inc. TBBB up 15%, Medtronic plc MDT down 3.6%, Ralph Lauren Corp. RL up 4%, Hamilton Lane Inc. HLNE up 4.9% and CSW Industrial Inc. CSWI up 4.4%.
• Live Nation Entertainment LYV fell nearly 7%, making it the worst performer in the S&P 500. The decline followed a Department of Justice lawsuit against its subsidiary, Ticketmaster, arguing that the company should be dismantled due to its monopoly in ticketing and concert promotion.
• The Boeing Company BA tanked nearly 6% after the company’s CFO announced that Q2 deliveries won’t recover from the previous quarter.
• Companies slated to report their earnings after the close are Intuit Inc. INTU, Workday Inc. WDAY, Ross Stores Inc. ROST, StepStone Group Inc. STEP, PagSeguro Digital Inc. PAGS and Cavco Industries Inc. CVCO.

Read now: Goldman Sachs Expects Nvidia To ‘Sustain Competitive Lead,’ Raises Price Forecast To $1,200 Following Stellar Q1 Earnings

Image generated using artificial intelligence via Midjourney.