Stocks rallied on Wednesday, fueled by investor reactions to AI chipmaker Nvidia Corporation’s (NASDAQ:NVDA) earnings report, just before the holiday trading pause.
The Nasdaq Composite Index saw an increase of approximately 0.6%, while both the S&P 500 Index and the Dow Jones Industrial Average experienced gains of about 0.4%.
Nvidia surpassed analysts’ expectations with its latest quarterly results. However, the stock declined around 2% in the afternoon session, influenced by the company’s comments on the impact of U.S. restrictions on chip exports to China.
In the commodities sector, oil prices declined, with West Texas Intermediate (WTI) crude futures dropping over 2% to just under $76 per barrel. This came as OPEC+ postponed a meeting initially set to discuss production levels.
In AI sector news, OpenAI announced a surprising shift with Sam Altman resuming his role as CEO, reversing his recent removal. This development, which also includes the introduction of new board members like former Treasury Secretary Larry Summers, aims to address internal discord. OpenAI, known for ChatGPT, sees this move as a victory for major supporter Microsoft Corporation (NASDAQ:MSFT), whose stock climbed more than 1% following the announcement.
On the individual stock front, Deere & Company (NYSE:DE) shares dropped roughly 3% following a gloomy profit forecast. The agricultural equipment manufacturer’s outlook, citing high borrowing costs impacting demand, mirrors a trend seen in recent retail sector earnings reports.
Featured Image – Freepik
Author Kristen Moran 