Major tech stocks drive S&P 500 to a new all-time high, with Nvidia’s market value breaking $3 trillion. While some companies enjoy significant gains, others like Dollar Tree face challenges as economic data presents mixed results.
On June 5, 2024, the Standard & Poor’s 500 index climbed by 1.2%, surpassing its previous all-time high from two weeks prior. The Nasdaq composite increased by 2%, also setting a record, while the Dow Jones industrial average, with less tech emphasis, rose by 0.2%. This surge is driven by high investor enthusiasm for artificial intelligence technology, led notably by Nvidia. Nvidia’s market value exceeded $3 trillion for the first time, up 5.2% for the day and 147% for the year.
Tech companies like Hewlett Packard Enterprise, which saw a 10.7% jump due to strong AI-related sales, and other major players such as Microsoft, Meta Platforms, and Broadcom also contributed to the market’s upward trend. Additionally, CrowdStrike saw a 12% increase following strong quarterly profits.
Despite overall gains, Dollar Tree’s shares dropped 4.9% due to missing revenue expectations and potential divestiture of its Family Dollar business. Economic data revealed mixed outcomes: service sectors indicated growth while hiring showed a surprising slowdown, influencing Treasury yields to fall as expectations for future interest rate cuts rose.
Internationally, European markets largely gained ahead of anticipated interest rate decisions by the European Central Bank, while Asian indexes saw mixed performance with declines in Tokyo and Shanghai, and a rise in Seoul.
