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US Stock Indices Decline, NVIDIA's Earnings Boost After-Hours Trading

US Stock Indices Decline, NVIDIA's Earnings Boost After-Hours Trading

Despite a lackluster performance on the US stock market on the 28th, NVIDIA’s quarterly earnings report released after the close exceeded expectations, driving its stock price higher in after-hours trading. On the same day, US major indices initially rose but later declined, ending with the Dow Jones Industrial Average down by 244.95 points to close at 42098.7 points.

According to reports from CNBC and other media, the market is still digesting the Federal Reserve's May meeting minutes and a series of corporate earnings reports. The minutes indicated that participants were concerned about the high uncertainty surrounding the economic outlook, and the likelihood of a recession is not low.

NVIDIA reported earnings after the close, posting an adjusted earnings per share of 96 cents, beating the anticipated 93 cents; net income was $18.8 billion, with revenue of $44.06 billion, surpassing the analyst forecast of $43.3 billion, representing a 69% year-on-year growth. Revenue from their data center segment was $39.1 billion, slightly below analyst expectations of $39.3 billion but still showing a year-on-year growth of 73%. NVIDIA's stock jumped about 6% in after-hours trading.

However, it is expected that NVIDIA's second quarter revenue may slightly fall short of forecasts due to the impact of export restrictions on chips sold to China, which is likely to show a significant effect on sales.