Portugal Colonial - US, European stocks rise, shrug off Nvidia share drop

The main US stock indexes opened higher even as Nvidia fell after the tech titan reported earnings that did not meet everyone's sky-high expectations.

After US markets closed on Wednesday, Nvidia said its sales more than doubled to $30 billion in the second quarter, but at a slower pace than in previous quarters, and that profits also doubled, to $16.5 billion.

Nvidia has become a bellwether for the tech sector owing to its huge role in the development of AI chips and its shares have risen more than 150 percent since the start of the year, accounting for a third of the broad-based S&P 500 index's gains.

Despite the impressive earnings, Nvidia's shares initially fell by as much as eight percent in after-hours trading Wednesday as traders had hoped for even better results from one of the world's most valuable companies.

Nvidia shares were down almost around two percent on Thursday after the markets opened.

"Investors have become spoiled, expecting Nvidia not just to meet but obliterate expectations," said independent analyst Stephen Innes.

- Back to rates -

Traders are now focused on a raft of economic indicators that could shed light on the possible size of expected rate cuts by the US Federal Reserve and the European Central Bank next month.

US Federal Reserve chief Jerome Powell gave markets a boost last week when he declared that the central bank was ready to finally cut borrowing costs, which sit at a 23-year high.

Government figures showed Thursday that the US economy expanded more than initially thought in the second quarter, growing at an annual rate of 3.0 percent, up from 2.8 percent in an earlier estimate.

The GDP report helped to "reassure investors that the economy is not teetering on an economic cliff," said eToro US investment analyst Bret Kenwell.

Despite the revision, "the Fed is unlikely to alter its plans to cut rates at next month's meeting after Chair Powell made it clear that it's time to shift policy toward lower rates," he said.

Other figures Thursday showed US jobless claims fell slightly last week. Investors will next look at the Fed's favoured gauge of inflation on Friday and key jobs data next week.

In Europe, Germany reported the country's inflation rate slowed to 1.9 percent in August, the lowest in more than three years and within the ECB's two-percent target.

With Spain also reporting slower inflation and other eurozone countries expected to do the same, "that paves the way for a September rate cut," said Franziska Palmas, senior Europe economist at Capital Economics.

The Frankfurt DAX reached an intra-day record of 18,912.47 points. It eased a bit but was still up 0.6 percent at 18,901.43 points mid-afternoon.

Paris and London were also higher.

Earlier in Asia, Tokyo closed flat, Hong Kong rose and Shanghai fell.

Asian tech shares were among the worst performers in the wake of Nividia's results, with chipmakers taking a hit.

SK Hynix fell more than five percent in Seoul, where Samsung was also down more than three percent. The wider Seoul stock market finished in the red.

Taipei-listed TSMC, a key producer of semiconductors, sank more than two percent and Taiwan's stock exchange fell.

- Key figures around 1340 GMT -

New York - Dow: UP 0.3 percent at 41,234.40

New York - S&P 500: UP 0.5 percent at 5,618.59

New York - Nasdaq Composite: UP 0.9 percent at 17,713.16

London - FTSE 100: UP 0.3 percent at 8,367.03

Paris - CAC 40: UP 0.7 percent at 7,628.13

Frankfurt - DAX: UP 0.6 percent at 18,901.43

Tokyo - Nikkei 225: FLAT at 38,362.53 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 17,786.32 (close)

Shanghai - Composite: DOWN 0.5 percent at 2,823.11 (close)

Dollar/yen: UP at 145.32 yen from 144.50 yen on Wednesday

Euro/dollar: DOWN at $1.1087 from $1.1119

Pound/dollar: DOWN at $1.3162 from $1.3194

Euro/pound: DOWN at 84.23 pence from 84.27 pence

West Texas Intermediate: UP 0.9 percent at $75.19 per barrel

Brent North Sea Crude: UP 0.6 percent at $79.14 per barrel

O.Salvador--PC