Wall Street hit a new high on Tuesday (18/6) as Nvidia continued its positive run to new highs, surpassing Microsoft to become the company with the largest market capitalization.
In this climate, Mr Dow Jones rose 0.15% to 38,834.86, the S&P 500 added 0.27% to 5,487.97 and the Nasdaq Composite gained 0.02% to 17,860.43. Both the S&P and Nasdaq closed at new record highs.
“In general, we’ve seen investors go after Nvidia and the other ‘usual suspects,’ but now we’re seeing smaller names join (the rally),” said Ken Mahoney of Mahoney Asset Management. “The money will not leave the market, but I predict that it will move around the leaders for this quarter,” he added.
Nvidia jumped 3.56%, surpassed Microsoft as the company with the highest capitalization and has continued its upward trend, ever since it recently surpassed Apple in market capitalization. The chipmaker is up more than 170% year-to-date as excitement about artificial intelligence continues.
Other semiconductor stocks were led by Nvidia and also rose, with Qualcomm and Taiwan Semiconductor gaining 2.18% and 0.99% respectively. Micron Technology gained 3.80%. The sector was also boosted by the recent decline in bond yields, after the retail sales report which raises hopes for an economic slowdown and, consequently, a reduction in interest rates by the Fed.
Tuesday’s moves followed a positive session on Wall Street, with the S&P and Nasdaq hitting record highs and closing at record highs.