Time: 2024-08-21
Nvidia shares are on the rise despite previous dips in premarket trading . The company received a boost from a new AI training deal with California , which helped counterbalance concerns about an economic slowdown . Bank of America and UBS analysts have expressed positive sentiments about the stock , noting that delays in AI chip shipments may not be as significant as initially thought . The stock has seen significant growth this year , up by about 120%.
In global news , Stock markets in the United States and Britain have experienced positive growth . The FTSE 100 Index in London rose by 0.8 % , with the UK economy showing growth in the second quarter . The US economy also saw a rise in retail sales , with Walmart reporting strong results . These positive indicators have helped ease fears of a recession in the US and have led to an increase in stock prices on both sides of the Atlantic.
The recent data releases in the United States have painted a positive picture of the economy . Retail sales rose by 1 % in July , signaling resilience in consumer spending despite higher borrowing costs . Walmart has raised its annual sales forecast , further indicating strong consumer confidence . The report also showed a decrease in new applications for unemployment benefits , suggesting a healthy labor market.
US stocks rose and government bonds were sold off following the data releases . The S&P 500 closed higher , erasing losses from earlier in the month . Analysts have stated that the risk of a recession in the US remains low , with further evidence supporting strong consumer spending . Walmart 's positive sales growth reflects consumer prioritization of essential spending.
Market analysts are predicting further growth in the US and UK economies , with expectations of interest rate cuts in both countries . The Bank of England recently cut its interest rates , with expectations of another cut before the end of the year . Analysts predict a further decrease in the base rate in the UK by the end of next year . The overall outlook for the economy in both countries remains positive , with consumer spending and business confidence driving growth.
In conclusion , recent developments in the stock market indicate positive trends in the United States and London . Economic indicators such as retail sales , consumer spending , and jobless claims point towards continued growth and resilience in the face of potential economic challenges . Analysts are optimistic about the future outlook , with expectations of further interest rate cuts to support economic expansion.
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