Stock market today: Dow, S&P 500, Nasdaq close higher as Nvidia pops, Google slides
Published On Feb 5, 2025, 4:29 PM
US stocks saw a recovery after initial losses, driven by a strong performance from Nvidia, despite disappointing earnings from Alphabet and AMD. Alphabet's stock dropped sharply due to a revenue miss in its cloud segment and concerns over its significant investments in AI. On the other hand, Nvidia benefited from expectations of continued big tech spending on AI. Meanwhile, AMD's positive revenue beat was overshadowed by worries about its data center sales forecast. Tariff tensions between the US and China also impacted major tech stocks, with both Alphabet and Apple facing scrutiny. The 10-year Treasury yield declined, favoring interest-sensitive sectors like Real Estate and Utilities.
Stock Forecasts
NVDA
Positive
Nvidia's strong performance and expectations of ongoing AI investments make it a favorable option. With tech spending not looking to slow down and Nvidia being a key player in the AI chip market, the outlook for the stock remains bullish.
GOOGL
Negative
Alphabet faces significant headwinds due to the cloud revenue miss and potential antitrust scrutiny in China, leading to a bearish sentiment around the stock. Investors are cautious regarding the company's growth outlook given its massive spending on AI without corresponding revenue increases.
AMD
Negative
AMD's future looks uncertain after disappointing guidance for its data center sales, which could limit its growth potential and lead to further declines in stock value.
F
Negative
Ford's muted guidance alongside stable Q4 results presents a negative outlook as market pressures are expected to impact profitability effectively. Given current dynamics, it may not be a strong buy.
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