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Nvidia (NVDA) Surges 14% on Stronger-Than-Expected Q4 Results, US Unemployment Claims Unexpectedly Fall, Gold Futures Slump, and Domino’s Pizza (DPZ) Misses Revenue Estimates

Shares of Nvidia (NVDA) surged 14% on Thursday after the semiconductor giant posted stronger-than-expected fourth-quarter results and guidance, with Wall Street analysts praising the chip maker.[0] This news came on the back of an artificial intelligence (AI) driven boom in chip demand, and investors are now expecting at least two more Federal Reserve rate increases this spring.[1]

The Labor Department report on Thursday showed claims for state unemployment benefits unexpectedly fell -3K to a 3-week low of 192K, showing a stronger labor market than expectations of an increase to 200K.[2] A different report indicated the U.S. Gross Domestic Product (GDP) for the fourth quarter was decreased to +2.7% quarter-over-quarter (q/q) from the previous estimate of +2.9% q/q, due to a decrease in consumer expenditure.[3]

Meanwhile, gold futures fell 0.5% to $1,832.45/oz, while EUR/USD traded 0.1% lower at 1.0597.[4] Dow Jones consensus estimates suggest that personal income likely increased by 1.2% in the previous month.[5] The prior month saw a 0.2% increase, and this month is even higher[6] It is predicted that consumer expenditures will increase by 1.4% in January, following a 0.2% decrease in December.[6]

The Federal Reserve's favorite way of measuring inflation, the personal consumption expenditures price index, is set to be released Friday morning. It is expected that the Federal Reserve's favored measure of prices, the Personal Consumption Expenditures index for Friday, will demonstrate an increase. Anna Wong of Bloomberg Economics has reported that an upcoming report is expected to contribute to a series of negative numbers, thus strengthening the argument for the central bank to maintain a rate of 5.25% for a while.[7] The benchmark is currently between 4.5% and 4.75%.[7]

The stock of Lucid Group (LCID) plummeted by nearly 13% following the publication of the electric vehicle maker's fourth-quarter results, which were below expectations. Furthermore, the number of preorders for their Air sedan decreased, suggesting a decline in demand for the cars.[8] Shares of eBay Inc. (NASDAQ:EBAY) dropped 7.6% following a warning of decreased demand due to changes in customer expenditure.[9] DPZ suffered a sharp decline and was the SP500's biggest loser in terms of percentage, due to its failure to meet revenue expectations and the withdrawal of its long-term forecasts.[10]

0. “Here's Why Nvidia Stock Surged Today” The Motley Fool, 23 Feb. 2023, https://www.fool.com/investing/2023/02/23/heres-why-nvidia-stock-surged-today/

1. “Bears Have the Edge as the Market Awaits More Inflation Data” RealMoney, 23 Feb. 2023, https://realmoney.thestreet.com/markets/bears-have-the-edge-as-the-market-awaits-more-inflation-data-16116648

2. “Futures are Signaling a Weak Open for Wall Street, U.S. PCE Data In Focus” Barchart, 24 Feb. 2023, https://www.barchart.com/story/news/14518036/futures-are-signaling-a-weak-open-for-wall-street-u-s-pce-data-in-focus

3. “Stock market news today: S&P 500 ends slump after volatile session” Markets Insider, 23 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-sp500-ends-losing-streak-gdp-revision-2023-2

4. “Dow futures rise 85 pts; bullish Nvidia guidance boosts sentiment By Investing.com” Investing.com, 23 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-rise-85-pts-bullish-nvidia-guidance-boosts-sentiment-3011926

5. “Dow Jones Futures: Nasdaq Rallies On Nvidia, But PCE Inflation Report Looms | Investor's Business Daily” Investor's Business Daily, 24 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-nasdaq-rallies-up-to-resistance-on-nvidia-all-eyes-on-pce-inflation-report/

6. “Stock futures fall as investors await key inflation and consumer data: Live updates” CNBC, 24 Feb. 2023, https://www.cnbc.com/2023/02/23/stock-market-today-live-updates.html

7. “Tech-Driven Stock Rally Sputters Amid Fed Overhang: Markets Wrap” Yahoo Canada Finance, 23 Feb. 2023, https://ca.finance.yahoo.com/news/asia-stocks-face-pressure-fed-224556015.html

8. “Stock market news today: Stocks fall after back-to-back losses for S&P 500, Dow” Yahoo News, 23 Feb. 2023, https://news.yahoo.com/stock-market-news-today-february-23-2023-122852056.html

9. “Stocks Higher Thursday Afternoon; Labor Market Shows Continued Strength” InvestorsObserver, 23 Feb. 2023, https://www.investorsobserver.com/news/market-updates/stocks-higher-thursday-afternoon-labor-market-shows-continued-strength

10. “Nasdaq, S&P, Dow erase gains to trade lower; NVIDIA soars after results” Seeking Alpha, 23 Feb. 2023, https://seekingalpha.com/news/3940061-nasdaq-sp500-dow-jones-stock-market-economic-data-nvidia

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