Tech stocks, led by Nvidia, continue to drive the market higher as companies exceed Wall Street’s expectations for AI technology revenue. Nvidia’s stock rose another 5.2%, bringing its gain for the year to over 147%, making it one of the strongest forces lifting the S&P 500.
In addition to Nvidia, other tech giants like Microsoft, Apple, Meta Platforms, and Broadcom also saw significant gains, contributing to the overall market rally. Cybersecurity company CrowdStrike also surged 12% after reporting better-than-expected profit and revenue for the latest quarter.
Despite the strong performance of tech stocks, retail giant Dollar Tree experienced a 4.9% drop after falling short on revenue expectations. The retail industry as a whole is facing challenges, particularly for lower-income households trying to cope with high inflation.
The bond market saw Treasury yields fall following mixed economic data, with reports showing growth in the U.S. services sector but a slowdown in hiring at U.S. employers. The possibility of a slowdown in the economy has raised expectations for interest rate cuts by the Federal Reserve.
Looking ahead, all eyes are on the upcoming monthly jobs report from the U.S. government, which could provide further insight into the state of the economy. Investors are hopeful for a slight pickup in hiring without the risk of widespread layoffs.
Overall, the market remains optimistic about the future, with hopes for continued growth in the tech sector and potential rate cuts by the Federal Reserve. Stock markets abroad also saw mixed results, with European indexes rising ahead of an interest rate decision by the European Central Bank, while Asian markets experienced some declines.
