A rally in Nvidia shares led the major stock indexes higher Wall Street, S&P 500 and Nasdaq, a day after the sale of the stock of the American giant that produces chips used in artificial intelligence systems.
The index S&P 500 increased by 0.39% to 5,469.30 units, while Nasdaq recorded gains of 1.26% to 17,717.65 points. Both indices ended a three-day downtrend. In contrast, the Dow Jones lost 299.05 points or 0.76% to close at 39,112.16 points.
THE Nvidia shares rose 6.7%; although in Monday’s session it fell more than 6%, the biggest daily drop since April 19, when it lost 10% of its value.
The decline sent Nvidia, the darling of artificial intelligence into a correction environment, falling more than 13%, dragging other semiconductor companies including Super Micro Computer, Qualcomm and Broadcom into the red.
Nvidia’s losses sent the Nasdaq down more than 1 percent in Monday’s session, its biggest one-day drop since April. The Nasdaq 100 also had its worst session since April as investors liquidated stocks in the semiconductor sector.
According to Chris Zaccarelli, chief investment officer of the Association of Independent Advisors, he called the fall of Nvidia and other big names from the tech space a temporary fix.
“Technology is driving the market again and Nvidia has changed its sign. This year is still about technology and artificial intelligence. The values are very high, but the AI rally has a bigger background than the dot bubble. com. All of the high performing stocks had strong gains,” he explained.
Investors remain optimistic that the bull market will continue into the fall, noting that artificial intelligence has replaced interest rate cuts as the driving force fueling the market’s rally.
Many big names from the technology space, which posted losses in Monday’s session, recovered in today’s session. Amazon rose 0.4%, while Meta and Google each returned more than 2%.
However, SolarEdge Technologies fell 21% after announcing plans to issue $300 million in convertible bonds.