The Nasdaq composite index showed resilience in morning trading on Thursday, as investors absorbed a slew of earnings reports and managed to make gains. Despite facing pressure from chip giant Nvidia falling below its 50-day moving average and Taiwan Semiconductor delivering a defensive sell signal, the Nasdaq managed to reverse its losses and post a 0.5% gain for the day. This marked a significant turnaround considering the index had fallen more than 3% for the week, showcasing the market’s volatility.
Amidst this backdrop, the S&P 500 initially traded near break-even before climbing 0.5%, continuing its year-to-date gain of 5.3%. The Russell 2000 saw a more than 1% increase, while the Dow Jones Industrial Average climbed 0.7%. As investors closely monitored quarterly earnings reports, the focus was on companies like Netflix and Intuitive Surgical set to report after the regular session close. Despite positive economic indicators such as an increase in the Philadelphia Fed’s manufacturing index and weekly jobless claims remaining below expectations, market gains remained modest.
Nvidia managed to eke out a gain of 1.5% after briefly falling, while Taiwan Semiconductor faced a sharp decline of more than 4% in rapid turnover. The chip giant’s decline was triggered by dropping below its 50-day moving average and revising its 2024 sales outlook, leading to a profit-margin hit due to the impact of a massive earthquake in Taiwan on its chip production. Meanwhile, bank stocks like Comerica and other financial institutions saw gains, boosting the market’s performance on Thursday.