Breaking News: Nasdaq and S&P 500 Hit Record Highs as Nvidia Leads the Charge
In a historic turn of events, the Nasdaq and S&P 500 have achieved record-high closes, thanks to a surge in Nvidia's stock following comments from Federal Reserve Chair Jerome Powell. Powell's remarks signaled that more positive economic data could pave the way for rate cuts, boosting investor confidence.
Nvidia, a leading AI chipmaker, saw a 2.5% increase in its stock price, offsetting declines in other chip stocks. Meanwhile, Microsoft dipped 1.4%, and Tesla added 3.7%, contributing to the overall market momentum.
Powell's testimony before Congress highlighted the possibility of interest-rate cuts in response to improving inflation data. While he refrained from indicating the timing of future actions, markets have already factored in a 50 basis points easing for the year, with a high likelihood of a 25 bps cut by September.
As the second-quarter earnings season kicks off, major banks like JPMorgan, Wells Fargo, and Citi are expected to release their financial results, with analysts projecting a 10.1% increase in S&P 500 companies' aggregate earnings per share.
Overall, the S&P 500 closed at 5,576.98 points, the Nasdaq at 18,429.29 points, and the Dow Jones at 39,291.97 points. Despite the market gains, declining stocks outnumbered rising ones within the S&P 500 index.
In a separate development, Tempus AI witnessed a 4% rise after receiving bullish ratings from top brokerages. The genetics testing firm, which recently went public, is down 7% from its IPO price.
With inflation data and earnings reports on the horizon, investors should stay vigilant and monitor market trends closely. As the economy shows signs of resilience and growth potential, strategic investments could yield significant returns in the coming months.