NVIDIA Continues To Lift Tech Stocks Higher – US Market Wrap
Daily Dose, US

NVIDIA Continues To Lift Tech Stocks Higher – US Market Wrap

– The stock rally powered ahead as Nvidia Corp.’s bullish outlook rekindled the artificial-intelligence mania and data showed the world’s largest economy is still going strong.
– From the United States to Europe and Japan, shares reached new highs, with the most valuable chipmaker rising 16% on Thursday and adding $277 billion to its market capitalization. That is the largest single-session value increase ever, surpassing Meta $197 billion gain. With the statistics in, bulls are calculating Nvidia’s new price-to-earnings ratio, or how much investors are willing to pay for future growth. In other words, the company’s profits have outpaced its stock price growth.
– The MSCI ACWI Index, which includes both developed and emerging markets, reached its all-time high. The Nasdaq 100 rose 3%, while the S&P 500 experienced its largest rise since January 2023. The $16 billion VanEck Semiconductor ETF (SMH) surged 6.8%. Advanced Micro Devices and Broadcom, two additional chipmakers that are projected to profit from AI growth, both set new marks. Super Micro Computer Inc., which has become a favourite among investors seeking exposure to breakthrough technology, surged 33%.
– Equities were also boosted by strong manufacturing, housing, and labor-market data, while traders took more hawkish Fed rhetoric in stride. Treasury 10-year rates were slightly changed, at 4.32%.
– Nvidia’s major customers include Amazon, Meta, Microsoft, and Google, which account for roughly 40% of its revenue as they rush to invest in AI computer technology.