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From Financial Times: 2024-05-23 13:08:49

US stock indices hit record highs as Nvidia’s market value exceeded $2.5tn for the first time. The S&P 500 rose 0.3% and Nasdaq Composite surged 0.9%. Nvidia’s shares jumped 11% after strong earnings, a 10-for-1 stock split, and increased dividend. The company’s revenues soared 262%, surpassing analysts’ predictions.

Investors have been optimistic about Nvidia’s growth in the AI sector, with the company consistently surpassing revenue and margin forecasts. Nvidia’s market cap rose by $220bn to surpass $2.5tn, making it larger than Amazon and Tesla combined. The rally also lifted other chip companies like ASML, Applied Materials, and Marvell Technology.

Federal Open Market Committee meeting minutes indicated a readiness to raise interest rates if inflation rises. US jobless claims fell by 8,000 to 215,000, tighter than economists’ forecasts, hinting at a strong labor market. The release sparked a minor sell-off in government debt, causing yields on two-year Treasuries to rise.

Eurozone workers received a 4.7% pay increase from collective wage agreements, leading to a rise in German two-year bond yields. The news prompted traders to revise their expectations for fewer rate cuts from the European Central Bank this year. European stocks saw modest gains, with the Stoxx 600 closing 0.06% higher, while London’s FTSE 100 fell 0.4% due to utilities groups.



Read more at Financial Times: Wall Street stocks hit record high as Nvidia market cap powers past $2.5tn