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Nvidia, U.S. credit ratings, Best Buy earnings: Top stories

Yahoo Finance Live anchor Julie Hyman highlights today's top stories including Nvidia stock rising on AI boom, Fitch placing the U.S. on ratings watch negative, and Best Buy sales missing the mark.

Video transcript

JULIE HYMAN: Here are three things that you need to know this morning. Going from strength to strength, Nvidia blows past even the most bullish of expectations with first quarter earnings. Demand for AI chips like the H 100 rocketed with center revenue up almost 15% on the year to $4.3 billion. The move further propels the stock that had already seen an astronomical 109% rise this year.

The pop in the company's market value today setting up to be among the biggest in history on the earnings call. CFO Colette Kress said visibility for data center demand had now probably extended out a few quarters. And optimism from House Speaker Kevin McCarthy that a deal will be reached on the debt ceiling, and it's not enough for Fitch. The ratings agency has placed the United States on ratings watch negative as the uncertainty around the talks persists.

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What does it mean? Well, the move serves as a stark warning that Fitch could downgrade US debt if lawmakers don't come to some sort of agreement and fast. In a statement, Fitch cited, quote, "increased political partisanship hindering reaching a resolution." We're approaching now the so-called X date when the federal government effectively will not have enough money to pay all of its bills.

And more retail reports help shine a light on the health of the US consumer. Best Buy missing the street with revenue of $9.47 billion. It reaffirmed its March outlook expecting a decline in full year revenue and a comparable sales drop of between 3 and 6%. The retailer says it expects a slowdown in consumer electronics spending this year and CEO Corie Barry painted a cautious consumer making, quote, "trade off decisions." It follows the narrative we heard last week from the likes of Home Depot and Walmart. That said, the shares are higher. Some of the components of the report may be a little bit not as bad as expected.