Key Players and Their Impact on the Market
The major indices of Wall Street closed at record highs for the third consecutive day, driven by technology sector companies. Investors eagerly await quarterly reports from large-cap corporations.
Performance of Major Indices
- The Dow Jones increased by 0.34% to reach 47,706.37 points.
- The S&P 500 gained 0.23% to close at 6,890.89 points.
- The Nasdaq Composite rose by 0.80% to hit 23,827.49 points.
Tech Giants Fuel the Rally
NVIDIA, a leading AI chipmaker, announced several key developments at its GTC conference, including partnerships with Finnish company Nokia and the construction of seven supercomputers for the US Department of Energy. These announcements bolstered NVIDIA’s stock, which surged by 5%, adding over $230 billion to its market value and bringing it closer to the $5 trillion mark.
Microsoft’s stock also climbed 2% following an agreement that allows OpenAI to restructure as a public benefit corporation while giving Microsoft a 27% stake in the ChatGPT manufacturer.
Earnings Season Progress
Approximately one-third of the S&P 500 companies have reported their quarterly results so far. Of these, 83% have exceeded analysts’ earnings expectations, according to FactSet data.
“Earnings and momentum are driving the market,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “Earnings have been good,” he added.
Upcoming Earnings Reports and Monetary Policy
Today, investors will closely watch the quarterly earnings reports from Microsoft, Alphabet, and Meta, expecting insights into their AI investments.
Additionally, the market will be attentive to the Federal Reserve’s monetary policy decision, anticipating a 25 basis points interest rate cut, placing the federal funds rate between 3.75-4%.
Mexican Stock Market Performance
The Mexican stock market has experienced two consecutive days of gains as investors await financial information from local companies for the third quarter.
- The S&P/BMV IPC, managed by the Mexican Stock Exchange, rose 1.51% to trade at 62,795.24 points.
- The FTSE-BIVA, overseen by the Mexican Institutional Stock Exchange, gained 1.42% to reach 1,249.93 units.
Both benchmarks are less than 0.5% away from their historical highs achieved on September 30.
Key Questions and Answers
- What drove the Wall Street rally? The technology sector, led by companies like NVIDIA and Microsoft, fueled the market’s growth.
- What percentage of S&P 500 companies have reported earnings so far? Approximately one-third of the S&P 500 companies have reported their quarterly results, with 83% exceeding analysts’ earnings expectations.
- What are investors anticipating from upcoming earnings reports? Investors expect details on AI investments from Microsoft, Alphabet, and Meta.
- What is the expected outcome of the Federal Reserve’s monetary policy decision? The Fed is anticipated to cut interest rates by 25 basis points, placing the federal funds rate between 3.75-4%.
- How is the Mexican stock market performing? The Mexican stock market has experienced two consecutive days of gains, with both benchmarks remaining close to their historical highs.
