Nvidia most expensive US company
Wall Street takes a breather
18.06.2024, 22:45
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After a record-breaking run on the US stock markets, investors are keeping their feet still and consolidating their profits. Despite skeptical indications from the Fed, hopes of two interest rate cuts this year remain. Nvidia has overtaken the previous market leader, Microsoft, in terms of market value.
After the previous day’s record highs, the US stock markets have consolidated their gains. Dow Jones Index rose by 0.1 percent to 38,835 points. The S&P 500 advanced by 0.3 percent. The index reached a new record high, which was only slightly higher than the previous day. Nasdaq Composite closed barely changed. On the NYSE, 1613 (Monday: 1650) price gainers were seen, compared to 1206 (1131) losers. 58 (95) titles closed unchanged.
Appearances by some representatives of the US Federal Reserve did not move the market because they neither dampened nor fueled hopes of interest rate cuts. Most recently, market participants were still expecting two interest rate cuts in the US this year, although the US Federal Reserve had recently only signalled one. The fact that the US stock exchanges will be closed on Wednesday due to a holiday may also have contributed to investors’ reticence.
Economic data also provided no impetus. The much-watched retail sales rose slightly less than expected in May. The weak data caused bond prices to rise, which is why yields fell. This is proof that the weak data gave new impetus to the interest rate cut fantasy, especially since the US economy is heavily driven by consumption. “The Fed’s restrictive monetary policy is working. With retail sales, inflation should calm down sooner or later,” says one trader. Recently, consumer confidence was also weaker than expected. The fact that industrial production and capacity utilization were better than expected had little impact on interest rate cut speculation. Consumption is more important for economic development.
Nividia replaces Microsoft
Falling market interest rates weighed on the dollar: The Dollar index came back from the daily highs and showed itself to be stable on a daily basis. Oil prices rose again significantly, supported by the assumption of increasing demand during the holiday season. Goldman Sachs expects a moderate price increase on the crude oil market until the European Brent variety reaches a high of 86 dollars in August. Currently, a barrel costs around 85 dollars. The Gold price Meanwhile, the stock market trended somewhat firmer, supported by falling bond yields.
NVIDIA climbed 3.5 percent to a record high, making the company the previous number 1 Microsoft (-0.5%) as the most valuable US company. Close behind in third place is Applewhose price fell by 1.1 percent. Also in the technology sector, Dell 5 and Micron 3.8 percent. In addition to Nvidia, analysts also see these two companies as beneficiaries of the AI boom. Lennar lost 5 percent. The home builder reported profits and sales that exceeded expectations, but its outlook was disappointing. On the day of the report, Lennar explained its figures in a meeting of analysts.
Philip Morris International fell by 0.8 percent. The division that produces Zyn nicotine pouches has suspended sales on its US website. Local authorities in Washington are investigating whether the ban on the sale of flavored products there has been complied with. Silk Road Medical shot up by 24 percent. Boston Scientific (+0.2%) takes over the company. The transaction is worth around 1.26 billion dollars. La-Z-Boy (+19.4%) earned more in the past fourth quarter than the market expected.
You can find out more about today’s stock market events here.