Tech Stocks Rise on Nvidia Earnings, Investors Await Warsh, More

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Bloomberg News Now 7 min 5 speakers 5 chapters transcribed 24 days ago
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What is the main topic discussed in this episode?

Ashley Roberts 0:00
The Big Tig Podcast from Bloomberg News keeps you on top of the biggest stories of the day.
Unknown 0:05
My fellow Americans, this is Liberation Day.
Ashley Roberts 0:08
Stories that move markets.
Traci Alloway 0:10
Chair Powell opened the door to this first interest rate cut.
Ashley Roberts 0:14
Impact politics, change businesses. This is a really stunning development for the AI world. And how you think about your bottom line. Listen to the big take from Bloomberg News every weekday afternoon on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
Nathan Hager 0:32
News when you want it with Bloomberg News Now. I'm Nathan Hager.

Why did Nvidia’s earnings cause tech stocks to jump?

Nathan Hager 0:37
Wednesday morning trading is underway with AI Bulls leading the run on this Wednesday this Thursday morning. That is the sound of the opening bell from the floor of the New York Stock Exchange. Still thinking about Wednesday when NVIDIA reported earnings. But at the open on this Thursday, the SP five hundred is higher by three tenths of one percent, just above the seventy seven hundred level. For the benchmark. The Dow Jones industrial average is down a tick, uh, down about a tenth of one percent. But the tech heavy NASDAQ composite is leading the gains this morning up nine tenths of one percent following earnings from NVIDIA. The AI chip giant said its revenue will grow by about seventy percent into next year, well ahead of the forty-five Wall Street was looking for.
Nathan Hager 1:21
Neil Campling is a senior strategist at Bloomberg News.
Neil Campling 1:24
Vidyria is saying that customer forecasts would actually have implied something close to a doubling of revenue, but it expects to remain supply constrained through the time. Cause the AI cycle is still being governed by physical constraints such as memory, packaging, power, data center capacity. So there's no shortage at all.

What does the Nasdaq’s gain tell investors about the AI rally?

Nathan Hager 1:44
You can hear more from Bloomberg's Neil Campling on the Bloomberg Daybreak US edition podcast, NVIDIA shares at the open, soaring up nearly seven percent. Soon attention will turn though to Jackson Hole and Fed Chair Kevin Warsh's first speech to the annual economic symposium. Bloomberg's Lisa Obramowitz is there and says investors are looking for clarity on Walsh's inflation plan.
Lisa Abramowicz 2:04
This is a really uh notable moment because there is a difficult understanding of whether they've made progress or fallen further behind since the last FOMC meeting. A year ago, the Fed funds rate was at four and a half percent. We were talking about how potentially there could be weakness in the labor market. The unemployment rate's gone from four point three percent to four point one percent. Inflation has gone from two point nine percent to three point three or three point four percent, depending on which metric.
Nathan Hager 2:30
Bloomberg's Lisa Abramowitz and the divide over how to tackle that is already forming at Jackson Hole. We spoke with the host, Kansas City Fed President Jeff Schmid.
Jeffrey Schmid 2:39
Maybe there's a bit of a reset that we have to make uh but uh for me I I I think uh we're a little on the accommodative side.
Nathan Hager 2:45
On the other side, Chicago Fed President Austin Golsby told a podcast the last three months of inflation data don't look terrible. He says a three percent interest rate with two percent inflation is a loose target worth aiming at. Stay with Bloomberg for full coverage of Chairman Warsh's remarks on a special edition of Bloomberg Surveillance live from Jackson Hole tomorrow morning, starting at nine Wall Street time on Bloomberg Radio and Television and the Bloomberg. Bloomberg Business app ahead of it. The Treasury yield curve is up about a basis point just about across the curve for the 10 year and the 30 year. The policy sensitive two year yield is at 4.21%. The death toll is up to at least 359 from the flash flood in Nepal's border region with Tibet.
Nathan Hager 3:29
More than 1,400 others are missing, including Americans. Sunil Acharya is a climate and public policy. Yeah.
Sunil Acharya 3:36
We've seen uh you know, such events happening uh and r uh rising scale of such events over the years, but this is unprecedented.
Nathan Hager 3:46
Climate expert Sunil Acharya says preliminary data suggests a glacier broke loose, triggering a magnitude five point two seismic event that set off a massive landslide.

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