US Stocks Rebound on Resilient Economy, Nvidia Sinks

US Stocks Rebound on Resilient Economy, Nvidia Sinks

Shares of NVIDIA Corporation (NVDA) fell nearly 10% during intraday trading after the company warned that revenues will fall short of expectations in its third fiscal quarter. The drop was one of the largest single-day percentage declines for the chipmaker since May 2018.

The broader market, however, appeared to shrug off NVIDIA's warning and focused on a resilient economy instead. The S&P 500 rose 1%, while the Nasdaq gained 0.9% as technology stocks rebounded from recent losses.

Analysts at Bernstein raised their rating on Marriott International (MAR) to outperform, sending shares up more than 2%. In a note to clients, Bernstein said that the hotelier's stock was "undervalued" following a strong third quarter performance.

Tesla Inc (TSLA) also rose, gaining nearly 1% as William Blair initiated coverage on the electric car maker with an outperform rating. The firm highlighted Tesla's underappreciated energy storage business.

Birkenstock shares fell more than 5% after reporting third-quarter revenue that just missed average analyst estimates. Some analysts noted that expectations had been high, with the stock up about a third since its $1.5 billion initial public offering (IPO).

Kohl's Corporation (KSS) was downgraded to underweight from neutral by JPMorgan, which said that the department store chain's results were disappointing. Shares fell 2.5% premarket.

Overall, the Dow Jones Industrial Average rose about 180 points or 0.6%, while the S&P 500 gained 1.4%. The Nasdaq Composite added 0.7%.