Wall Street Advances; Nvidia’s Value Hits Another Record, Closing in on Apple

Street indices are trading with gains this Wednesday. Stock averages are rising, driven by Nvidia, which reached a new record.

Ignacio Teson•Wednesday, June 5, 2024•1 min read

Stock Averages Rise Driven by Nvidia’s New Record and Weak Labor Data Supporting Rate Cut Hopes.

The three major Wall Street indices are trading with gains this Wednesday. Stock averages are rising, driven by Nvidia, which reached a new record, and weak labor data that bolster hopes for rate cuts.

The leading Dow Jones index, comprising 30 giant stocks, is up 0.03% at 38,723.40 points. The S&P 500, encompassing 500 stocks, advances 0.64% to 5,325.02 points, while the tech-heavy Nasdaq Composite climbs 1.30% to 17,076.04 points.

Chipmaker and AI giant Nvidia hit a new record this morning, drawing ever closer to Apple’s valuation after announcing new, more powerful chips. Its stock has surged 139% this year.

Nvidia, the third-largest public company in the world, closed yesterday with a market capitalization of $2.86 trillion, while Apple’s stands at $2.98 trillion. Nvidia is now just over 4% away from surpassing Apple.

SPX

On the economic front, the latest ADP private payroll report revealed that U.S. hiring slowed in May to 152,000 jobs, below the 175,000 predicted by analysts.

As the AI euphoria continues to fuel Wall Street, expectations for Federal Reserve rate cuts this year have grown, ahead of key labor figures to be released on Friday.

Among sectors, communication services (1.1%) and technology (0.91%) are leading gains, while within the Dow Jones, Goldman Sachs (0.86%) and 3M (0.67%) are the top performers. On the downside, Cisco (-1.43%) and Walt Disney (-1.33%) stand out.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.