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GLOBAL MARKETS-Stocks ease past Nvidia blues, crude oil rebounds
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GLOBAL MARKETS-Stocks ease past Nvidia blues, crude oil rebounds
Aug 29, 2024 9:01 AM

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Wall Street shrugs off Nvidia ( NVDA ) disappointment

*

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.

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