Stock market today: Dow, S&P 500, Nasdaq close higher as Nvidia pops, Google slides
Published On Feb 5, 2025, 4:29 PM
On February 5, 2025, U.S. stock markets showed recovery after a sharp decline, with major indexes like the Nasdaq Composite (up 0.2%) and the S&P 500 (up 0.4%) seeing gains. This follows disappointing earnings from Alphabet and AMD, which saw respective drops of nearly 8% and over 6% due to concerns about cloud revenue and AI momentum. However, Nvidia's stock surged over 5%, buoyed by increased spending on AI from major tech companies. The 10-year Treasury yield fell to 4.42%, its lowest since December 2024. Companies like Ford reported earnings that exceeded expectations but provided cautious guidance for 2025, resulting in an after-hours share drop of nearly 5%. Meanwhile, President Trump’s proposed tariffs contribute to investor uncertainty, particularly in tech stocks. Overall, while big tech capital expenditures aimed at AI are expected to rise significantly in 2025, skepticism persists among investors with regard to their effectiveness and timing of returns.
Stock Forecasts
NVDA
Positive
The disappointing results from Alphabet and AMD combined with Presidents Trump’s tariff threats could put downward pressure on their stocks. Conversely, Nvidia stands to benefit from continuing investment in AI technologies. Thus, Nvidia’s growth could be sustained as large organizations allocate money towards AI, despite some concern about the cost-effectiveness of those investments.
F
Negative
Following a mixed earnings report and cautious guidance, Ford is expected to face headwinds as market factors and tariff developments could cloud its forecasts. The stock has already shown an after-hours decline which might persist as concerns surrounding future tariffs materialize. Investors may react negatively as uncertainties prevail.
GOOGL
Negative
Despite Alphabet's share drop after disappointing cloud revenue results, the anticipated increase in capital expenditures in AI indicates long-term growth potential. However, the ongoing scrutiny from China's antitrust actions could hinder short-term recovery, suggesting a negative market response in the immediate future.
AMD
Negative
AMD's disappointing outlook on data center sales despite beating quarterly revenue expectations indicates mixed signals which may lead to further declines in stock value as investors reassess the growth trajectory in the AI sector.
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Stock market today: Dow, S&P 500, Nasdaq close higher as Nvidia pops, Google slides
Feb 5, 2025, 4:29 PM
US stocks were higher amid a backdrop of scattered earnings and the outbreak of a trade war with China.