Nvidia and Tesla Surge as Dow Rebounds 300 Points; Micron Plummets 17%”
But the Dow Jones Industrial Average bounced back on Thursday to a glimmer of hope for investors after a historic 1,100-point drop on Wednesday—the worst streak since 1974. That rebound happened despite lingering fears about the Federal Reserve’s muted view on cutting interest rates. Meanwhile, major indices, including the S&P 500 and Nasdaq, bounced back with gains, following a broader recovery from Wednesday’s market rout.
The Market Optimism Leads Dow to Jump
Minutes after Thursday’s opening bell, the Dow added 341 points (0.8%), as did the S&P 500 and Nasdaq. The optimism is boosted by the fact that the 10-year Treasury yield pushed over 13 basis points above 4.50%.
Rally Led by Tech Giants
After dropping this week, shares of chipmaking powerhouse Nvidia (NVDA) bounced back 1.4% in morning trading. Tesla (TSLA) meanwhile rose 2.5%, trading at $452 per share. The tech sector has displayed remarkable resilience since both companies helped in the market’s recovery.
US Jobless Claims Fall, Lifts Confidence
The Labor Department said weekly jobless claims dropped surprisingly. For the week ended December 14, initial claims fell 22,000 to 220,000, topping economists’ call for 230,000. An unexpected decrease of this magnitude has boosted market sentiment, assuming a stable labour market.
Hit Hard: Micron Technology
Not all stocks participated in the optimism. Micron Technology (MU) dropped 17% after its latest earnings report included very disappointing guidance. Micron traded down 9.2 percent to $86 a share, making it the worst-performing stock on the S&P 500. The sector grappled with a softness in semiconductors that analysts refer to as ‘the longest bear market on record.’
The demand for new AI services is growing for Accenture
In other news, the results were positive for Accenture (ACN), which topped earnings expectations. This was buoyed by better-than-expected revenue growth fueled by a spike in demand for AI-enabled solutions. Consulting giant shares soared 6 per cent, climbing to $369 each. Such robust performance underlines the increasing use of AI technologies amongst different sectors of the human economy.
Key Earnings to Watch
Nike (NKE) and FedEx (FDX) are expected to report earnings after the market closes, and investors are watching closely. These updates could potentially inform consumer trends or global economic health.
Takeaway: While cautious optimism returned to a market still grappling with Federal Reserve policies and sector-specific issues, Nvidia and Tesla helped power a 300-point rally for the Dow. However, the swift drop in Micron’s stock shows how volatile and uncertain the economy is. So, keep an eye on key earnings reports as they unfold to see where the market may be heading.
