The US stock market continued its upward climb on Thursday, with the S&P 500 closing at a record high. Leading the charge was the technology sector, fueled by a surge in Nvidia’s stock price.
The S&P 500 rose 1% to settle at a record 5,156.84, surpassing its previous high set earlier this week. The tech-heavy Nasdaq Composite jumped even higher, gaining 1.5%.
Nvidia, a leading manufacturer of graphics processing units (GPUs), was the star of the show. Its stock price soared over 4%, reaching a new all-time high. This impressive performance can be attributed to continued optimism surrounding the growth of artificial intelligence (AI). Investors are betting that Nvidia’s powerful chips will be in high demand as companies increasingly adopt AI technologies.
The positive sentiment around Nvidia wasn’t an isolated event. Other tech giants also saw significant gains. Chipmaker Micron Technology rose more than 3% after receiving an upgrade from analysts. Big tech companies like Meta Platforms (Facebook) and Amazon also joined the rally, adding to the overall momentum in the sector.
Bullish run in tech stocks
This bullish run in tech stocks comes amidst positive signals from the Federal Reserve. Chair Jerome Powell recently reiterated the possibility of rate cuts later this year. This news has instilled investor confidence, fueling a general sense of optimism in the market.
While the tech sector spearheaded the market’s rise on Thursday, other sectors also contributed to the positive performance. Tata Motors, the Indian automaker, experienced a significant jump in share price, reaching a new 52-week high.
Overall, Thursday’s trading session was a strong showing for the US stock market. The S&P 500’s record close and the bullish run in tech stocks underscore the current investor confidence. With positive economic signals and continued innovation in the tech sector, the market appears poised for further growth.
