US stocks rose in a volatile session marked by big news, with Nvidia shares rising ahead of its earnings announcement and bitcoin continuing its rally after the US election.
Options trading suggests that Nvidia’s results on Wednesday will be the most important catalyst left this year, even more so than the Federal Reserve’s December meeting, according to Barclays Plc strategists.
Shares of the chipmaker, a leader in the artificial intelligence boom, rose 4.9%, leading gains in the S&P 500. The previous decline in stocks was driven by Ukraine’s bombing of targets in Russia with U.S. missiles and President Vladimir Putin’s approval of an updated nuclear doctrine.
volatile market
For Gaurav Malik at Palace Capital Advisors, geopolitical uncertainty is a recipe for volatility. As for Nvidia’s results, he expects strong numbers, citing capital spending by big tech companies and his view that, for now, there is no clear alternative to the company’s chips.
“This is a volatile market,” said Nancy Tingler of Laffer Tingler Investments. “Stocks ultimately trade on earnings, which has been great. I wouldn’t recommend buying stocks before earnings, but if they’re selling, buy.”
The S&P 500 rose 0.4%, the Nasdaq 100 gained 0.7%, while the Dow Jones Industrial Average bucked the trend, falling 0.3%. The Big Seven (Tesla, Nvidia, Microsoft, Apple, Meta, Alphabet, Amazon) advanced 1.7%.
US 10-year bond yields also fell 2 basis points to 4.39%, while oil and gold prices rose.
