Overview
On Thursday, U.S. stocks edged higher in a volatile session as investors digested Nvidia’s earnings report and monitored geopolitical tensions. The Dow Jones Industrial Average rose 1.06%, driven by gains in utilities, financials, consumer staples, and industrials. The S&P 500 gained 0.53%, while the Nasdaq Composite ended nearly flat, rising just 0.03% as tech stocks showed mixed results. Nvidia shares, initially surging to a record high, closed up 0.53% after issuing a forecast for its slowest revenue growth in seven quarters, disappointing some investors.
Bitcoin soared to $98,005, approaching the $100,000 milestone, fueled by optimism surrounding President-elect Donald Trump’s crypto-friendly administration. Ethereum also jumped 8.77% to $3,350.80, extending the cryptocurrency rally. Meanwhile, geopolitical concerns flared as Russia and Ukraine exchanged missile strikes, pushing Brent crude prices up 1.95% to $74.23 per barrel and U.S. crude up 2% to $70.10.
In corporate news, Alphabet shares fell 6% after U.S. prosecutors pushed for the divestiture of its Chrome browser to break its dominance in online search. Energy stocks rallied alongside rising oil prices, while consumer staples benefitted from steady demand amid global uncertainties.
- Dow Jones Industrial Average: Rose 1.06% to 43,870.35
- S&P 500: Gained 0.53% to 5,948.71
- Nasdaq Composite: Rose 0.03% to 18,972.42
Fear & Greed Index
Greed – Optimism around Bitcoin and resilient corporate earnings outweighed concerns about Nvidia’s slowing revenue growth and geopolitical tensions.
Sector Performance
- Winners:
- Utilities and Financials: Defensive sectors attracted gains amid ongoing uncertainty.
- Energy: Surged on rising oil prices following heightened geopolitical risks.
- Losers:
- Communication Services: Alphabet dragged the sector lower with a 6% decline following antitrust developments.
- Technology: Mixed performance as Nvidia’s revenue forecast disappointed lofty expectations.
Key Movers
- Nvidia (NVDA): Rose 0.53%, initially hitting a record high before retreating as its growth forecast for the next quarter slowed.
- Bitcoin: Climbed 3.75% to $98,005, nearing the $100,000 milestone, driving gains in crypto-linked stocks like MicroStrategy.
- Alphabet (GOOGL): Dropped 6% amid renewed antitrust scrutiny over its Chrome browser.
Economic Data
- Jobless Claims: Declined, indicating continued labor market strength, bolstering expectations for stable economic growth.
- Oil Prices: Brent crude and WTI both rose nearly 2%, driven by heightened geopolitical concerns affecting supply outlooks.
- Gold Prices: Spot gold increased 0.8%, reaching its fourth consecutive session of gains amid inflation hedging and safe-haven demand.
Outlook
As markets adjust to Nvidia’s tempered growth expectations, investors will likely shift focus to broader economic indicators and upcoming Federal Reserve statements on interest rate paths. The cryptocurrency market continues to show strength, with Bitcoin nearing a historic milestone, which could further fuel enthusiasm for blockchain and crypto-linked stocks.
Geopolitical risks in Eastern Europe and Middle East tensions remain key variables affecting energy markets and investor sentiment. Defensive and energy stocks are expected to maintain momentum in the near term, while technology and communication services may face headwinds due to regulatory scrutiny and tempered growth forecasts.
Looking ahead, markets are also watching the incoming Trump administration’s appointments, particularly for Treasury Secretary, which could shape fiscal and trade policy direction. With volatility elevated, strategic sector rotation is likely as investors adapt to shifting dynamics across industries.