Macro

Nasdaq Surges 100+ Points; Nvidia Q1 Results, 10-for-1 Split Boost Sentiment

Nasdaq gains 100 points to 16,936.60; Nvidia's Q1 earnings beat estimates with $6.12 EPS and $26.04B revenue.

By Bill Bullington

5/23, 11:05 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
NVIDIA Corporation
Zoom Video Communications, Inc.
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Key Takeaway

  • Nasdaq surged over 100 points, driven by a 1.7% rise in information technology shares and Nvidia's strong Q1 results.
  • Nvidia announced a 10-for-1 stock split and raised its quarterly dividend by 150%, boosting investor sentiment.
  • OneMedNet Corporation shares soared 150% to $1.20 after significant expansion of its iRWD™ network and platform.

Mixed Market Performance

U.S. stocks exhibited mixed performance this morning, with the Nasdaq Composite gaining over 100 points, reflecting a robust 0.80% increase to 16,936.60. In contrast, the Dow Jones Industrial Average fell by 0.43% to 39,500.41, while the S&P 500 saw a modest rise of 0.29% to 5,322.53. The divergence in performance highlights sector-specific movements and investor sentiment influenced by recent earnings reports and macroeconomic data.

Information technology shares led the gains, rising by 1.7%, driven by strong performances from key players like Nvidia. Conversely, utilities shares lagged, falling by 0.5%, indicating a rotation out of defensive sectors. This sectoral shift underscores the market's current preference for growth-oriented stocks amid positive earnings surprises and forward guidance from tech giants.

Nvidia's Impact on Market Sentiment

Nvidia Corporation significantly influenced market sentiment with its announcement of a 10-for-1 stock split and a 150% increase in its quarterly dividend. The company's strong fiscal first-quarter results, with adjusted earnings of $6.12 per share surpassing estimates of $5.59, and revenue of $26.04 billion exceeding expectations of $24.65 billion, fueled optimism. Nvidia's fiscal second-quarter revenue guidance of approximately $28 billion also beat forecasts, signaling continued momentum in the AI and semiconductor sectors.

"Nvidia once again stepped up and delivered," said Ryan Detrick, chief market strategist at Carson Group. "The always important data center revenue was strong, while future revenue was also impressive." Nvidia's performance has been pivotal, given its substantial market cap of $2.3 trillion and its influence on the broader S&P 500. The company's results have reassured investors about the sustained growth potential in AI and technology sectors.

Equities on the Move

Several equities experienced significant price movements. OneMedNet Corporation's shares surged 150% to $1.20 following the expansion of its iRWD™ network and platform. Ascent Solar Technologies, Inc. saw a 107% increase to $0.2720, continuing its upward momentum from the previous day. Zoomcar Holdings, Inc. also gained 59% to $0.3331.

On the downside, MGO Global, Inc. shares plummeted 42% to $0.6752, and Akoustis Technologies, Inc. fell 36% to $0.2013 after announcing a $10 million registered direct offering. Akanda Corp. experienced a 25% decline to $2.73, reflecting investor reactions to recent market developments.