NEW YORK (AP) — Nvidia’s stock surged on Tuesday, making it the most valuable company on Wall Street. Despite stocks remaining around record levels, there are signs that the economy’s growth may be slowing without a significant decline.
The S&P 500 reached an all-time high for the 30th time this year, rising by 0.1%. The Dow Jones Industrial Average dipped by 0.1%, while the Nasdaq composite remained flat.
Nvidia continued to shine, with its stock rising by 3.7% and pushing the S&P 500 higher. The company’s market value exceeded $3 trillion, surpassing Microsoft and Apple as the top company on Wall Street.
Nvidia has benefited from the AI boom, with its chips playing a crucial role in the development of artificial intelligence. The company’s revenue and profit have been skyrocketing, leading to a 174.2% increase in its stock price this year.
While Nvidia and other tech giants have been driving the market’s rally, there are concerns about the market’s fragility if a few companies are responsible for most of the gains.
Treasury yields eased on Tuesday, with retail sales data showing growth but below expectations. This could influence the Federal Reserve’s decision to cut interest rates and prevent a recession.
Global fund managers are optimistic about stocks, with little cash reserves and heavy allocations to equities. Inflation remains a concern, particularly for lower-income households.
Some companies experienced significant stock movements on Tuesday, with Fisker filing for bankruptcy and La-Z-Boy reporting strong earnings. Boston Scientific agreed to acquire Silk Road Medical in a cash deal.
In global markets, European indexes recovered from a recent downturn, while Japan’s Nikkei 225 rose after Toyota’s shareholders rejected a proposal to remove Akio Toyoda as chairman.
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