US Stock Market Opens Mixed as Nvidia Fuels Tech Sector Gains
The US stock market opened mixed on Thursday, as traders digested fresh earnings reports from major companies. Despite some losses in the Dow Jones Industrial Average, the S&P 500 and Nasdaq Composite indices advanced.
Nvidia led the tech sector's gains after beating analyst expectations for Q2 revenues, which more than doubled year-over-year to top forecasts by a wide margin. Salesforce shares also surged on better-than-expected quarterly results and revenue guidance. Identity-management firm Okta rose on strong demand linked to artificial intelligence.
Best Buy posted stronger-than-forecast second-quarter results and raised its full-year outlook, although its stock fell as investors weighed rising computer prices. Dollar General beat quarterly sales estimates due to increased demand for lower-priced essentials during economic uncertainty and tariff refunds that boosted earnings.
The Labor Department reported a slower pace of Americans applying for unemployment benefits in the week ending August 22, with initial jobless claims falling by 4,000 to 203,000. Continuing claims decreased by 18,000 to 1.778m. US wholesale inventories rose 1.3% month-over-month in July, driven by a 1.6% increase in non-durable goods and faster growth in durable goods.
The trade deficit widened sharply in July, increasing to $118.8bn from $101.4bn in June due to higher imports and falling exports.