New York City, United States – The stock market in the United States experienced a surge on Thursday, marked by the S&P 500 briefly surpassing 5,500 for the first time ever. The tech giant Nvidia continued its unprecedented climb, solidifying its position as the world’s most valuable public company. This remarkable performance propelled the market to new highs, with tech-heavy indexes like the Nasdaq Composite touching record levels before settling near the break-even point. The Dow Jones Industrial Average also saw gains, reflecting the overall positive sentiment on Wall Street.
Investors returned from a holiday break on Wednesday with optimism, extending the winning streak into 2024. The advancement of stocks this year has been largely fueled by enthusiasm surrounding the potential of artificial intelligence (AI), with Nvidia emerging as a standout among companies in this sector. Its stock rose by 3% in early trading, bringing its total increase for the year to over 170%.
Nvidia’s rapid surge saw it surpass Microsoft as the most valuable company in the world, following closely behind Apple to take the second spot. This meteoric rise has caught many passive investors off guard, as highlighted by analysts in the finance industry. The focus also shifted to global central banks, with the Swiss National Bank lowering rates for the second time in 2024 and the Bank of England signaling a potential rate cut in the summer.
On the economic front, traders in the U.S. are anticipating a Federal Reserve rate cut by September. Weekly jobless claims data showed a slight dip to 238,000, just below the consensus expectation of 235,000. This positive trend in the labor market continues to support the overall bullish sentiment in the stock market.
In another development, energy-related stocks led Thursday’s gains, with the S&P 500 Energy Select ETF posting over 1% increase. This helped propel the S&P 500 to reach new highs, with major oil companies like ExxonMobil and Chevron seeing gains of more than 1.5%. The energy sector as a whole has outperformed the broader market, showcasing resilience amid market volatility.
Furthermore, housing construction activity experienced a downturn, with new data indicating a four-year low in housing starts. This decline is attributed to a slowdown in construction activity, reflecting broader challenges in the real estate market. Homebuilders are also losing confidence, citing high mortgage rates as a significant obstacle for potential buyers.
Overall, the stock market’s upward trajectory continues to be driven by tech companies like Nvidia, signaling a promising outlook for investors in the months ahead. The dynamic landscape of the market, coupled with economic indicators and global events, sets the stage for an interesting and potentially lucrative investment environment.