The three major stock indices on the New York Stock Exchange closed higher. Optimism surrounding Nvidia's second-quarter results prevailed, as did the fact that the preliminary gross domestic product (GDP) growth rate for the United States in the second quarter came out higher than expected.
On the 28th (local time), the Dow Jones Industrial Average closed at 45,636.9, up 71.67 points (0.16%) from the previous session. The Standard & Poor's (S&P) 500 index rose 20.46 points (0.32%) to 6,501.86, while the tech-heavy Nasdaq index rose 115.02 points (0.53%) to 21,705.16.
Nvidia announced its second-quarter results after the market closed the previous day. While it exceeded market expectations, the slight margin of that exceedance has shaken investor sentiment. This is because the market has been repeatedly expecting surprises upon surprises from Nvidia following the artificial intelligence (AI) boom.
Following the announcement of the second-quarter results, expectations for Nvidia remained, but there are also growing cautious voices than before. Some are concerned that Nvidia's results are overly concentrated.
However, Wall Street noted that Nvidia's annual revenue guidance for this year did not assume sales of H20 chips to China, and if an agreement regarding those sales is reached between China and the United States, the revenue for the third quarter could be much better than the forecasts.
By sector, essential consumer goods, healthcare, real estate, and utilities declined.
Among the large tech companies with a market capitalization of over $1 trillion, all but Tesla and Nvidia were strong.
Broadcom and Alphabet rose more than 2%, with Alphabet notably setting a new all-time high. The Philadelphia Semiconductor Index, composed of AI and semiconductor-related stocks, also rose 0.49%. Micron's stock increased by over 3%.
The preliminary growth rate of the U.S. gross domestic product (GDP) for the second quarter exceeded both expectations and flash estimates, indicating solid growth. The U.S. Department of Commerce announced that the seasonally adjusted preliminary GDP growth rate for the second quarter increased by an annualized 3.3% compared to the previous quarter, while the market expectation was 3.1%.