Nvidia's stock surged as much as 5% on Thursday, following comments from CEO Jensen Huang about overwhelming demand for the company's next-generation Blackwell GPU chips. Despite minor redesign delays earlier in the year, Huang confirmed that Blackwell chips are now in full production, with customers eager to secure them. Oracle co-founder Larry Ellison and Tesla’s Elon Musk, both major clients, have reportedly pressed Nvidia for more chips, underscoring the demand. Nvidia aims to enhance GPU performance annually, with Huang stating that improvements could increase customer revenues while reducing costs over time. Nvidia stock, which has risen 149% year-to-date, is now one of the top performers in the S&P 500, reflecting the company's critical role in the artificial intelligence (AI) revolution. Nvidia is also focused on building a complete technology stack that spans GPUs, software, and networking components, positioning itself as a leader in the evolving AI computing landscape.
U.S. Stock Market Declines Amid Rising Jobless Claims and Geopolitical Tensions
U.S. stocks edged lower on Thursday as investors digested an unexpected rise in weekly jobless claims and kept a close watch on escalating geopolitical tensions in the Middle East. Jobless claims increased by 6,000 to 225,000, surpassing expectations of 221,000. Despite the uptick, the four-week moving average fell to its lowest level since June, signaling ongoing labor market strength ahead of Friday's September nonfarm payrolls report, which is forecast to show 150,000 job additions.
In addition to labor market concerns, geopolitical risk weighed on markets, particularly after Iran launched a missile attack on Israel earlier in the week, raising fears of broader conflict. Oil prices have spiked as a result, with West Texas Intermediate crude rising 2.5% to $71.88 per barrel, while Brent crude climbed 2.3% to $75.62. Investors are also closely watching the Federal Reserve’s next move, with a 65% chance of a smaller 25-basis-point rate cut in November, following its previous 50-basis-point cut. Analysts from Bank of America noted that a soft labor report could trigger a larger market reaction, making Friday’s data a pivotal indicator for the Fed’s upcoming decisions.
U.S. Stock Market Declines Amid Rising Jobless Claims and Geopolitical Tensions
U.S. stocks edged lower on Thursday as investors digested an unexpected rise in weekly jobless claims and kept a close watch on escalating geopolitical tensions in the Middle East. Jobless claims increased by 6,000 to 225,000, surpassing expectations of 221,000. Despite the uptick, the four-week moving average fell to its lowest level since June, signaling ongoing labor market strength ahead of Friday's September nonfarm payrolls report, which is forecast to show 150,000 job additions.
In addition to labor market concerns, geopolitical risk weighed on markets, particularly after Iran launched a missile attack on Israel earlier in the week, raising fears of broader conflict. Oil prices have spiked as a result, with West Texas Intermediate crude rising 2.5% to $71.88 per barrel, while Brent crude climbed 2.3% to $75.62. Investors are also closely watching the Federal Reserve’s next move, with a 65% chance of a smaller 25-basis-point rate cut in November, following its previous 50-basis-point cut. Analysts from Bank of America noted that a soft labor report could trigger a larger market reaction, making Friday’s data a pivotal indicator for the Fed’s upcoming decisions.