The Nasdaq Composite rose to a new record Thursday on better-than-expected quarterly results from Nvidia. The broader market, however, struggled to stay in positive territory.
The tech-heavy Nasdaq gained 0.3% to an all-time high. The S&P 500 declined 0.3%, pulling back from its all-time high reached earlier in the session. The Dow Jones Industrial Average lagged, losing 472 points, or 1.2%. The 30-stock index was headed toward its worst day since April 30 as Intel and Boeing both fell more than 2%.
Chipmaker and artificial intelligence darling Nvidia surged more than 11%, sending shares above $1,000, after posting stronger-than-expected fiscal first-quarter results and announcing a 10-for-1 stock split.
Fiscal second-quarter revenue guidance of about $28 billion also beat an LSEG consensus forecast of $26.61 billion — a sign the company doesn’t see its momentum slowing. For the bottom line, analysts expect a profit of $5.95 per share.
Nvidia’s results have been a focal point for Wall Street, as traders hoped for signs that the excitement around AI is not waning. With its $2.3 trillion market cap, Nvidia also has considerable sway over the broad S&P 500.
However, the majority of the stocks in the broad market index fell negative Thursday, indicating a lack of market breadth. Nearly 400 names in the S&P 500 were lower, and information technology was the only positive sector for the day.
The market has “some loose footing,” Piper Sandler chief market technician Craig Johnson wrote in a Thursday note. “This market’s strange mix of leadership, combined with breakdowns in transportation stocks and mediocre breadth readings, makes us not so confident that a new leg higher will be sustained from current levels.”
This is a developing story. Please check back for updates.