---
title: "Stock Traders Look Past Nvidia After Solid US GDP: Markets Wrap"
description: "Stocks rose and bonds fell as data showed the US economy is holding strong despite elevated Federal Reserve rates. Nvidia Corp. sank 3% after its outlook failed to inspire."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-08-29-stock-traders-look-past-nvidia-after-solid-us-gdp-markets-wrap/"
published: "2024-08-29T17:12:55"
updated: "2024-08-29T17:13:37"
lang: "en-ZA"
word_count: 803
---

# Stock Traders Look Past Nvidia After Solid US GDP: Markets Wrap

> Stocks rose and bonds fell as data showed the US economy is holding strong despite elevated Federal Reserve rates. Nvidia Corp. sank 3% after its outlook failed to inspire.

By Bloomberg · Published 29 August 2024, 19:12 SAST · Updated 29 August 2024, 19:13 SAST

## Content

For all the hype around Nvidia’s results, a slide in its shares was unable to prevent the equity market from pushing higher. Buoyed by economic figures that showed consumer resilience, the S&P 500 extended its August advance and the Nasdaq 100 climbed 1%. Those figures gained even more importance in the run-up to the Fed’s preferred inflation gauge. The numbers are expected to show the core personal consumption expenditures price index is now a smidgen above the central bank’s 2% goal.Gross domestic product rose at a 3% annualized rate during the April-June period, up from the previous estimate of 2.8%. The economy’s main growth engine — personal spending — advanced 2.9%, versus the prior estimate of 2.3%. A separate government report out Thursday showed initial applications for unemployment benefits were little changed at 231,000.

“The message of this morning’s data is ‘steady as she goes’,” said Chris Larkin at E\*Trade from Morgan Stanley. “Weekly jobless claims were slightly lower than last week and GDP was revised slightly higher. The economy doesn’t appear to be falling off a cliff, and in the current market, good news is good. There was nothing here to make the Fed rethink its plan to cut rates next month.”

To [Bret Kenwell](https://x.com/BretKenwell) at eToro, the data helped reassure investors that the economy is “not teetering on an economic cliff.”

“While we’re not necessarily out of the woods, the US economy is more resilient than many realize,” Kenwell says. “Today’s report should give investors confidence that the Fed can still orchestrate a soft landing.”

The S&P 500 rose to around 5,630. A Bloomberg gauge of the “Magnificent Seven” megacaps climbed 1.3%. The Russell 2000 of smaller firms added 1%. [HP Inc.](https://www.bloomberg.com/news/articles/2024-08-28/hp-reports-first-sales-increase-since-2022-on-pc-market-upswing) jumped 5% after the hardware maker reported its first sales increase in two years. [Dollar General Inc.](https://www.bloomberg.com/news/articles/2024-08-29/dollar-general-drops-as-forecast-cut-amid-faltering-turnaround) plunged 25% after the discount retailer cut its sales forecast.

Treasury 10-year yields advanced five basis points to 3.88%. That’s ahead of a $44 billion seven-year US sale. The dollar gained, while heading toward its worst month in 2024.

At LPL Financial, Jeff Roach says downward revisions to inflation accompanying an upward revision to spending builds the case for a “soft landing.”

“Growth is solid, labor demand has moderated, layoffs have steadied, and inflation gauges are easing,” said Jim Baird at Plante Moran Financial Advisors. “That’s a solid combination for the Fed to reverse course and a potential Goldilocks scenario that has quelled recession concerns and provided new support for a potential soft landing.”

### Corporate Highlights:

- [Gap Inc.](https://www.bloomberg.com/news/articles/2024-08-29/gap-s-surprise-earnings-release-points-to-strong-second-quarter) beat sales expectations for the second quarter, suggesting that an overhaul by new Chief Executive Officer Richard Dickson is working.
- [Best Buy Co.](https://www.bloomberg.com/news/articles/2024-08-29/best-buy-lifts-profit-outlook-in-sign-of-improving-demand) raised its earnings guidance for the year, a sign that its turnaround efforts are starting to bear fruit as consumers begin upgrading Covid-era purchases with new products incorporating innovations like artificial intelligence.
- [CrowdStrike Holdings Inc.](https://www.bloomberg.com/news/articles/2024-08-28/crowdstrike-gains-on-stronger-than-expected-second-quarter-sales) reported second-quarter sales that topped analysts’ estimates, indicating that a global IT outage it caused last month didn’t have an immediate impact on results.
- The Netherlands plans to limit [ASML Holding NV](https://www.bloomberg.com/news/articles/2024-08-29/the-netherlands-to-put-more-curbs-on-asml-s-china-chip-business)’s ability to repair and maintain its semiconductor equipment in China, a potentially painful blow to Beijing’s efforts to develop a world-class chip industry.
- [Nokia Oyj](https://www.bloomberg.com/news/articles/2024-08-29/nokia-mobile-networks-assets-said-to-draw-interest-from-samsung)’s mobile networks assets are drawing preliminary interest from suitors including Samsung Electronics Co. amid increasing pressure to find new growth in the troubled telecom equipment sector, people with knowledge of the matter said.
- [Reliance Industries Ltd.](https://www.bloomberg.com/news/articles/2024-08-29/ambani-s-reliance-to-consider-one-on-one-bonus-share-issue) said it will consider a bonus issue of shares — the first in seven years — as its billionaire-chairman Mukesh Ambani looks to attract small shareholders amid a continuing diversification into consumer-facing businesses.

### Key events this week:

- Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday
- Eurozone CPI, unemployment, Friday
- US personal income, spending, PCE; consumer sentiment, Friday

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Some of the main moves in markets:

### Stocks

- The S&P 500 rose 0.8% as of 10:47 a.m. New York time
- The Nasdaq 100 rose 1.3%
- The Dow Jones Industrial Average rose 0.6%
- The Stoxx Europe 600 rose 0.7%
- The MSCI World Index rose 0.6%
- Bloomberg Magnificent 7 Total Return Index rose 1.3%
- The Russell 2000 Index rose 1%

### Currencies

- The Bloomberg Dollar Spot Index rose 0.3%
- The euro fell 0.5% to $1.1069
- The British pound fell 0.2% to $1.3161
- The Japanese yen fell 0.6% to 145.45 per dollar

### Cryptocurrencies

- Bitcoin rose 2.7% to $60,940.26
- Ether rose 1.5% to $2,575.3

### Bonds

- The yield on 10-year Treasuries advanced five basis points to 3.88%
- Germany’s 10-year yield advanced two basis points to 2.28%
- Britain’s 10-year yield advanced three basis points to 4.03%

### Commodities

- West Texas Intermediate crude rose 2.3% to $76.23 a barrel
- Spot gold rose 0.6% to $2,520.70 an ounce