US: Stocks gain after Nvidia results despite Google slump

WALL Street stocks shook off early weakness and pushed higher on Thursday following solid Nvidia results, while Alphabet tumbled after US authorities called for Google to be dismantled.

Nvidia itself had a volatile day, finishing modestly higher after several reversals. The chip company reported a whopping US$19 billion in profits, although investors wondered if its current rate of stupendous growth is sustainable.

But stocks rose as a “relief trade” after the Nvidia report, said Briefing.com analyst Patrick O’Hare.

The Dow Jones Industrial Average finished up 1.1 per cent at 43,870.35.

The broad-based S&P 500 gained 0.5 per cent to 5,948.71, while the tech-rich Nasdaq Composite Index edged up less than 0.1 per cent to 18,972.42.

O’Hare called Thursday’s rally a “broad-based move,” noting nine of 11 sectors rose and adding that investors are hopeful about a year-end rally.

Sales of previously owned homes in the United States picked up in October, industry data showed, fueling hopes that a slump in the sector may be ending.

Among individual companies, Google parent Alphabet tumbled 4.6 per cent after the Justice Department asked a federal court to order Google to sell its widely used Chrome browser in a major antitrust crackdown.

DOJ also asked the court to ban deals for Google to be the default search engine on smartphones and prevent it from exploiting its Android mobile operating system.

SEE ALSO

US: Wall St opens higher after jobless claims data, Nvidia results

Google is expected to make its recommendations in a filing next month and rival sides will argue their positions at a hearing in April.

Deere & Co jumped 8.1 per cent as it reported better-than-expected earnings despite suffering a 28 per cent drop in revenues. AFP