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Wall Street shrugs off Nvidia ( NVDA ) disappointment
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Tech stocks prod STOXX 600 towards record highs
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US dollar gains after GDP data backs smaller Fed cut
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Oil gains as Libyan supply woes counter modest US stock
draw
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Gold gains as investors zero in on Fed cuts, inflation
data
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Graphic: World FX rates http://tmsnrt.rs/2egbfVh
(New throughout, updates prices with U.S. market, adds analyst
quote)
By Chibuike Oguh
NEW YORK, Aug 29 (Reuters) -
Global shares edged higher on Thursday, shrugging off
investor disappointment at artificial intelligence powerhouse
Nvidia's ( NVDA ) results, while oil prices rebounded from two sessions
of losses helped by Libyan supply disruptions.
Wall Street's main indexes were
trading higher
, with the Dow Jones Industrial Average rose 0.64% to
41,353.44, the S&P 500 gained 0.72% to 5,632.22 and the
Nasdaq Composite gained 1.07% to 17,744.52.
European stocks rose 0.75% after hitting a record
high powered by technology shares. MSCI's gauge of stocks across
the globe rose 0.28% to 829.66.
Nvidia ( NVDA ) beat analyst estimates on Wednesday with second
quarter revenue of $30 billion and third quarter revenue
forecast at $32.5 billion. But the results
failed to meet
lofty investor expectations that have underpinned a massive
rally in Nvidia ( NVDA ) shares and catapulted the company into one of
the main drivers of the benchmark S&P 500. The stock was last
down 3.3%.
"Interestingly, Nvidia ( NVDA ) did as well as anybody expected.
They did even better, I would say they even crushed the
numbers," said Mark Malek, chief investment officer at
SiebertNXT in New York.
"But expectations are everything out there these days and
people were hoping for some real fireworks."
The U.S. economy grew at a 3.0% annualized rate last
quarter, according to
Commerce Department data
on Thursday, indicating that the Federal Reserve would have
room to begin cutting rates in September.
The yield on benchmark U.S. 10-year notes
rose 2.6 basis points to 3.867%. Markets are fully pricing in a
rate cut of at least 25 basis points (bps) during the Fed's
September meeting, although expectations for a cut of 50 bps
fell to 34.5% after the data, according to CME's FedWatch Tool.
Investors are also eyeing the personal consumption
expenditure price index - which is the Fed's preferred inflation
measure - is due on Friday.
"The economy is doing a little bit better than expected.
If you break down the number you see once again, it's the
intrepid consumer that is continuing to consume, which is very
positive for the economy," Malek added.
The U.S. dollar rose
after GDP data. The dollar index, which measures the
greenback against a basket of currencies including the yen and
the euro, gained 0.52% at 101.53, with the euro down
0.53% at $1.1061.
Gold climbed again and was just shy of notching another
record high. Spot gold added 0.51% to $2,514.89 an ounce.
U.S. gold futures gained 0.63% to $2,518.30 an ounce.
Oil prices edged higher as concerns over Libyan supplies
helped offset a smaller than expected draw in U.S. crude
inventories, which tempered demand expectations.
Brent crude futures were up 2.15% to $80.34 a
barrel, while U.S. West Texas Intermediate crude futures
were up 2.15% at $76.39.