NVIDIA TOPS $3 TRILLION IN VALUE AS S&P 500, NASDAQ REACH HIGHS
NEW YORK — Wall Street barreled to records Wednesday as its frenzy around artificial-intelligence technology keeps sending stocks higher. The rally sent the total market value of Nvidia, which has become the poster child of the AI boom, above $3 trillion for the first time.
The S&P 500 climbed 1.2% to top its alltime high set two weeks ago. The Nasdaq composite jumped even more, 2%, and likewise set a record. The Dow Jones Industrial Average, which has less of an emphasis on tech, lagged the market with a gain of 96 points, or 0.2%.
Some fatter-than-expected profit reports from tech companies helped drive the market. Hewlett Packard Enterprise jumped 10.7% after saying strong sales related to artificial-intelligence systems helped it deliver better results than expected. It also raised its financial forecasts for the year.
Companies have so far been meeting Wall Street’s sky-high hopes for how much money AI technology will generate. That’s helped to catapult stocks almost regardless of what the broader economy and interest rates are doing.
Nvidia is leading the way because its chips are powering much of the rush into AI, and it rose another 5.2% to bring its gain for the year to more than 147%.
As has become almost routine, Nvidia was again the day’s strongest force lifting the S&P 500.
The chip company also joined Microsoft and Apple as the only U.S. stocks to ever top $3 trillion in total value. Apple regained that milestone valuation after rising 0.8% Wednesday.
The S&P 500 rose 62.69 points to 5,354.03. The Nasdaq jumped 330.86 to 17,187.90, and the Dow added 96.04 to 38,807.33.
Treasury yields fell in the bond market following some mixed data on the economy. One report said real estate, health care and other businesses in the U.S. services sector returned to growth last month and beat economists’ forecasts. Perhaps more importantly for Wall Street, the report from the Institute for Supply Management also said prices rose at a slower pace in May than a month before.
Another report in the morning suggested hiring slowed last month by more than expected at U.S. employers outside the government.