$NVDA Takes The Crown For Most Valuable Company & The Market Is Becoming More & More Optimistic As Investors Open Their Sites On A Rate Cut 🎯
US Stocks Near Record Highs as Nvidia Takes the Crown 👑
The US stock market continued its upward trend on Tuesday, with the S&P 500 and Nasdaq Composite indices climbing to new heights. The Dow Jones Industrial Average also saw a slight increase, as investors remained optimistic about the market’s prospects. The big news of the day was Nvidia’s surge to become the most valuable public company, surpassing Microsoft’s market capitalization. Nvidia’s stock price rose an impressive 3.5% to over $135 per share, giving the chipmaker a market cap of over $3.34 trillion. Microsoft’s market cap, on the other hand, stood at around $3.33 trillion.
The tech sector has been driving the market’s rally, fueled by the growing excitement around artificial intelligence (AI). Investors are eager to get in on the action, and Wall Street banks are revising their year-end S&P targets upward. One strategist even commented that the AI revolution is still in its “early innings,” suggesting that there’s still plenty of room for growth.
However, not all the news was positive. May’s retail sales numbers came in below expectations, with a meager 0.1% increase. This could be a sign of consumer strain due to high interest rates and persistent inflation. April’s numbers were also revised downward, adding to the concern.
Meanwhile, Federal Reserve officials continued to weigh in on the path of interest rates. Fed governor Ariana Kugler expressed optimism that improving supply and cooling demand will support continued disinflation, and hinted that it may be appropriate to begin easing policy later this year. Despite this, investors remain skeptical, with over 60% still expecting two rate cuts by the end of the year. Overall, the market’s upward trend continues, driven by the tech sector’s AI-fueled rally. However, investors should remain cautious, keeping an eye on consumer spending and interest rates as the economy continues to evolve.
