Article by Caroline Valetkevitch
In Tuesday’s trading, the Nasdaq saw an increase of over 1%, finishing the day on a high note. This surge was primarily driven by a significant rise in technology shares, as the market anticipated the release of Nvidia’s results later this week. Walmart’s shares also witnessed an increase following the retailer’s upward revision of its annual forecasts.
However, the Dow did not experience similar fortunes, ending the day with a drop. The three primary indexes commenced the day on a low note, with the benchmark index seeing a 0.6% decrease. This drop is attributed to Russian President Vladimir Putin’s decision to lower the nuclear strike threshold in response to an expanded range of conventional attacks.
The losses were somewhat mitigated after reassuring statements from Russian Foreign Minister Sergei Lavrov, who emphasized Russia’s commitment to prevent a nuclear war.
Nvidia, a prominent chipmaker scheduled to release its quarterly results on Wednesday, saw a 4.9% increase in its shares, providing a substantial boost to all three major indexes. Shares in other tech giants also saw a rise, including Amazon.
“There’s a sense of caution due to the events unfolding in Ukraine. Investors seem to be seeking refuge in megacap names, which is somewhat surprising given Nvidia’s impending earnings release.” said Timothy Chubb, Chief Investment Officer at Girard, a Univest Wealth Division.
Walmart shares saw a 3% increase, reaching a record closing high following the retailer’s decision to raise its annual sales and profit forecasts for the third time. “Walmart’s optimistic guidance was a key factor for the market. The fact that more customers are buying items from higher margin categories is an encouraging sign,” Quincy Krosby, Chief Global Strategist at LPL Financial, noted.
In other news, Super Micro Computer saw a 31.2% increase in shares after the AI server manufacturer appointed BDO USA as its auditor, and submitted a plan to the Nasdaq to avoid delisting. Netflix’s shares also rose 2.9%, marking a record high for the second consecutive day after it was revealed that a boxing match between Jake Paul and Mike Tyson was viewed by 108 million people.
Adding to the optimism, Goldman Sachs strategists predict that the S&P 500 could reach 6,500 by the end of 2025.
Investors are also closely following the formation of President-elect Donald Trump’s administration. Trump announced his choice of celebrity doctor Mehmet Oz for the administrator of the Centers for Medicare and Medicaid Services, and Wall Street CEO Howard Lutnick for the commerce secretary position.
The day ended with 172 new highs and 97 new lows on the NYSE, with advancing issues outnumbering declining ones by a ratio of 1.14 to 1. The Nasdaq saw 2,459 stocks rise and 1,841 fall, with advancing issues outnumbering decliners by a 1.34 to 1 ratio. The volume of shares traded on U.S. exchanges was 13.94 billion, slightly lower than the 14.24 billion average over the last 20 trading days.
