[New York Stock Market Briefing] Rise on Expectations for NVIDIA's Earnings... Only Slightly Exceeded Forecasts

The major indices on the New York Stock Exchange closed higher. Optimism regarding NVIDIA's earnings improved investor sentiment. However, NVIDIA's announced results only slightly beat expectations.

On the 27th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) closed at 45,565.23, up 147.16 points (0.32%) from the previous day; the S&P 500 Index ended at 6,481.40, up 15.46 points (0.24%); and the NASDAQ Composite Index finished at 21,590.14, up 45.87 points (0.21%).

During the regular session, hopes regarding NVIDIA's earnings drove equity indexes. The market's focus centered on NVIDIA as its performance is seen as an indicator for the expansion of the Artificial Intelligence (AI) industry. The fact that NVIDIA reported results that beat expectations in 11 out of the previous 12 quarters also raised market expectations. As a result, the S&P 500 Index hit a new intraday all-time high during the session.

NVIDIA’s Q2 earnings, released after the close of the regular session, exceeded expectations, but its stock price declined in after-hours trading. NVIDIA reported revenue of $46.74 billion (₩65,155.5 billion) and earnings per share (EPS) of $1.05 (₩1,463) for May–July. This slightly surpassed the consensus forecast compiled by LSEG—$46.06 billion in sales and $1.01 EPS. As the announced results did not significantly exceed market expectations, NVIDIA shares are showing a decline of around 3% in after-hours trading.

The tug-of-war between President Donald Trump and the Fed over the issue of a US base rate cut continues. President Trump attempted to dismiss Fed Governor Lisa Cook, but as Cook responded with a lawsuit, the market is turning its attention to other issues for the time being. Market participants believe the legal dispute will be prolonged and are disregarding concerns over an erosion of the central bank's independence.

On the NYSE this day, healthcare, industrials, and communications services sectors were slightly lower, while all others were firmly higher.

Mega-cap tech companies valued at over $1 trillion showed mixed movement near unchanged levels.

Telecommunications firm EchoStar jumped another 15.59% on the day. The stock had soared 70% the previous day on news of selling a wireless frequency license to AT&T for $23 billion.

Developer data platform MongoDB soared 38% after reporting earnings that far exceeded market forecasts.

US retailer Kohl's surged nearly 24% after Q2 results nearly doubled market expectations.

American Eagle, a US apparel company, jumped 8.54% following an announcement of a collaboration with NFL player Travis Kelce, who is engaged to pop star Taylor Swift.

According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the federal funds futures market reflected an 87.2% probability of a 25bp rate cut in September, similar to the previous day's close.

The volatility index (VIX) on the Chicago Board Options Exchange (CBOE) rose 0.23 points (1.57%).

Case Han, Reporter for Hankyung.com case@hankyung.com