NEW YORK, May 24 — US stock indexes opened higher today, but the blue-chip Dow and the benchmark S&P 500 were set to snap four straight weeks of gains as inflation concerns rekindled monetary policy caution ahead of a long weekend.
The tech-heavy Nasdaq, however, was on course to add 0.8 per cent for the week thanks to Nvidia’s blowout quarterly results reinforcing investor faith in Big Tech’s bet on artificial intelligence.
Thursday’s session still saw all three main indexes fall as economic data pointing to rising price pressures dented bets of interest-rate cuts this year.
After a strong earnings season and expectation-beating forecasts from Nvidia, “the shift for investors now goes back to (the Fed),” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
“We’re going to be looking for all of that data and that will drive the market.”
Fresh data from the US Census Bureau showed orders for durable goods rose 0.7 per cent in April, compared with a 0.8 per cent dip expected by economists polled by Reuters. The University of Michigan’s final consumer sentiment index for May came in at 69.1, beating forecasts for a reading of 67.5.
Traders expect the US central bank to ease its interest rates by 34 basis points by year-end. Goldman Sachs pushed back its call for a first rate cut to September from July.
Nvidia shares rose 0.3 per cent after jumping more than 9 per cent a day earlier, closing above the key US$1,000 mark and adding around US$218 billion to its market value.
Reuters reported the company’s most advanced AI chip developed for China had a weak start, with abundant supply forcing it to be priced below Huawei’s rival chip.
All 11 S&P 500 subsectors were in positive territory today.
Other megacap stocks including Apple, Alphabet and Meta Platforms rose between 0.2 per cent and 0.9 per cent.
Small-cap stocks regained some ground, with the Russell 2000 rising 0.6 per cent after Thursday’s 1.6 per cent loss.
The US equity market will be closed on Monday for Memorial Day.
US equity funds secured substantial inflows in the week ended May 22, boosted by optimism around robust corporate earnings. LSEG Lipper data showed investors pumped US$9.9 billion into US equity funds, significantly higher than US$4.1 billion a week earlier.
At 10.03am ET, the Dow Jones Industrial Average was up 56.86 points, or 0.15 per cent, at 39,122.12, the S&P 500 was up 20.59 points, or 0.39 per cent, at 5,288.43, and the Nasdaq Composite was up 76.93 points, or 0.46 per cent, at 16,812.96.
Meanwhile, the US Securities and Exchange Commission approved applications from Nasdaq, CBOE and NYSE to list exchange-traded funds (ETFs) tied to ether prices, potentially paving the way for products to begin trading later this year. However, ProShares Ether Strategy ETF was down 2.8 per cent.
Workday dropped 11.5 per cent after the human resources software provider cut its annual subscription revenue forecast.
Ross Stores jumped 8.7 per cent after posting first-quarter results above estimates and raising its annual profit forecast.
Advancing issues outnumbered decliners by a 3.38-to-1 ratio on the NYSE and by a 1.81-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and 3 new lows, while the Nasdaq recorded 23 new highs and 48 new lows. — Reuters
