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Traders work on the floor of the New York Stock Exchange.
NYSE
The Dow Jones Industrial Average and the S&P 500 rose Thursday as investors poured into cyclical stocks poised to benefit from an accelerating economy and rotated out of technology shares such as Nvidia, which just reported quarterly earnings.
The Dow Jones Industrial Average gained 533 points, or 1.2%. The S&P added 0.7%, while the tech-heavy Nasdaq Composite edged up 0.3%.
“This is the week where everyone is rethinking the Trump trade,” said Mark Malek, chief investment officer at Siebert. “People are taking it a little more seriously. It’s not enough to just say ‘we think the sector is going to do well’ — you have to have some answers.”
Some of Thursday’s winners included bank stocks like Goldman Sachs, industrials giant Caterpillar and retailer Home Depot. The Russell 2000 Index, viewed as a barometer for small companies and beneficiary of a possible boost to the economy from President-elect Donald Trump, added more than 1.8%.
Investors assessed results for AI-chip juggernaut Nvidia, which was up 190% this year into the results. Shares seesawed even after the company reported better-than-expected third-quarter earnings and issued strong guidance. Some traders attributed the losses to slowing revenue growth from previous quarters, or concerns that the chipmaker didn’t exceed the most optimistic guidance estimate. The stock was last down about 1.4%.
Nvidia 1-day
“Any weakness will likely be bought for investors but traders who require beats and raises every quarter could lighten their exposure if no big beats happen for a few quarters,” Eric Clark, portfolio manager of the Rational Dynamic Brands Fund, said about Nvidia.
Some other technology stocks felt the pressure. Amazon slumped 2%, while Meta Platforms slipped about 1%. Alphabet declined by 5%, falling for a second session on antitrust fears. Snowflake was one bright spot in the sector, popping nearly 30% after topping Wall Street’s estimates and lifting its product revenue guidance for the fiscal year. Salesforce rallied about 5%, helping to lift the Dow.
Bitcoin also hit a fresh milestone, crossing the $98,000 level for the first time late Wednesday as investors maintained their hopes that a second Donald Trump presidency will usher in supportive regulation for the industry. It was last trading around $96,566.
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