S&P 500 closes at a record, powered by Nvidia surge and rate cut hopes: Live updates

Traders work on the floor of the New York Stock Exchange during afternoon trading on June 3, 2024.

Michael M. Santiago | Getty Images

of S&P 500 rose to a new record on Wednesday as Nvidia led major tech stocks higher and slightly weak labor market data gave investors hope that the Federal Reserve may move toward lower interest rates later this year.

The broad market index rose 1.18% to close at 5,354.03, a new record high. The S&P 500 also hit a new all-time intraday high of 5,354.16. The new points come after the index suffered a few slow weeks, and is now up 12.3% from last year.

of Nasdaq Composite advanced 1.96% to 17,187.90, also a new record high, as Nvidia shares jumped. of Dow Jones Industrial Average retreated slightly as non-tech stocks underperformed, adding 96.04 points, or 0.25%, to end the session at 38,807.33.

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The S&P 500 was on track for a record close on Wednesday.

Nvidia continued its AI-driven run, adding more than 5% to hit a new record and reach a market value of $3 trillion. The chipmaker unveiled new chips to start the week, which received more praise from Wall Street analysts. Bank of America said Nvidia could rise to $1,500, reflecting a more than 22% gain from Wednesday’s close.

Private payroll data from ADP showed hiring slowed to 152,000 jobs last month, well below the 175,000 economists surveyed by Dow Jones expected. The data is the latest sign of weakness in the labor market that investors hope will give the Federal Reserve enough evidence to cut key interest rates.

Fed funds futures trading now suggests a roughly 70% chance that central bank policymakers will ease from the current target rate of 5.25% to 5.5% in September, according to the CME FedWatch Tool. Attention will turn to weekly jobless claims numbers on Thursday and Friday, the all-important May jobs report.

“We see the S&P 500 hitting 5,500 by the end of the year amid Fed rate cuts, strong earnings growth and a secular bullish trend driven by artificial intelligence,” UBS Global’s chief investment officer wrote in a note on Wednesday. Wealth Management Solita Marcelli.

UBS expects the Fed to cut rates twice this year, providing “a healthy backdrop for equities,” Marcelli added.

Along with Nvidia, other technology stocks were leading Wednesday’s gains. Hewlett Packard Enterprise rose more than 10% after fiscal second-quarter earnings topped Wall Street estimates. CrowdStrike rose about 12% on stronger-than-expected earnings and guidance. Game of technology and artificial intelligence Meta Platforms added 3.8%

Wednesday’s gains were narrow with some banking and consumer stocks weak as technology rallied. Some investors worry that weak economic data could signal a broader slowdown and outweigh the effect of lower borrowing costs.

Friday’s jobs report will be the most important data of the week for markets, with economists polled by Dow Jones expecting 190,000 jobs to be added in May, up from 175,000 in April.

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