NVIDIA Soars to New Heights: Stock Hits $130, Overtakes Microsoft as 2nd Largest NYSE Listed Company
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NVIDIA, the leading player in artificial intelligence chips, regained its closing price of $130, regaining its position as the second-largest company by market capitalization on the New York Stock Exchange.
Over the past six days, NVIDIA’s stock has been winning, rising 4.3% to finish the day at $130. Its market capitalization reached $3.198 trillion, surpassing Microsoft Corporation, which is valued at $3.133 trillion. NVIDIA reclaimed its second spot while also narrowing the gap between Apple.
Investors paid close attention to the Democratic National Convention, which began on the same day, and the upcoming speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium on the 24th, where he might mention a potential interest rate cut. This speculation contributed to the rise of the three major New York Stock Exchange indexes, each extending their gains for the fifth day in a row.
The Dow Jones Industrial Average rose by 236.77 points, or 0.58%, closing at 40,896.53. The S&P 500 increased by 54 points, or 0.97%, to finish at 5,608.25. The Nasdaq Composite gained 245.05 points, or 1.39%, ending the day at 17,876.77. All 11 major sectors of the S&P 500 saw gains, with communication services leading the way.
Tesla’s stock surged by over 3%, and Alphabet also performed well, rising by over 2%. For the week, the three major indexes recorded gains ranging from 2.9% to 5.3%, marking the largest weekly increase of the year.
A Reuters survey revealed that a slim majority of economists expect the Fed to cut rates three times by 0.25% each by the end of the year. With the inflation cooling, they believe the U.S. economy will likely avoid a recession. The Jackson Hole Economic Symposium kicks off on the 22nd, and Powell’s speech on the 24th is expected to provide hints that the Fed’s monetary policy may shift from restrictive to neutral.
Recent data indicated that while the U.S. economy is slowing down, consumer spending remains robust, raising expectations that the Federal Reserve will reduce rates by 0.25% at its September policy meeting.
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