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The Nasdaq reached a historic high closing on Friday, buoyed by strong performances from leading tech stock Nvidia and a surge in the artificial intelligence (AI) sector. Nvidia's robust earnings report and positive outlook contributed to investor optimism, driving up stock prices. The broader AI sector also experienced significant gains, reflecting growing investor interest in AI technology's potential applications across various industries. The Nasdaq's record high underscores the continued influence of tech stocks and innovative sectors on market performance.
On Friday, the Nasdaq reached a new peak, buoyed by the robust performance of semiconductor giant Nvidia, which overshadowed concerns regarding potential delays in interest rate reductions by the Federal Reserve.
Closing figures for major indices reflected this sentiment: the S&P 500 climbed by 0.7%, settling at 5,304.72, while the Nasdaq Composite surged by 1.1%, concluding at 16,920.79. Conversely, the Dow Jones Industrial Average experienced a marginal uptick of 0.01%, adding 4.3 points to reach 39,069.59.
Assessing the week's performance, the S&P 500 saw a modest uptick of just 0.03%. Notably, the Nasdaq Composite outpaced other indices with a robust gain of 1.41%, emphasizing its resilience. Conversely, the Dow Jones Industrial Average recorded a decline of 2.33%, marking its first negative week in five, signaling potential shifts in market sentiment and investor priorities.
Nvidia’s shares surged approximately 2.6% on Friday following its impressive earnings report, surpassing $1,000 for the first time. Despite lingering concerns about the Fed's stance on rate cuts, optimism surrounding Nvidia and other tech companies lifted the market. Goldman Sachs revised its rate cut forecast to September due to strong economic data. Traders are now less certain about a rate cut in September, with less than a 50% probability according to the CME FedWatch Tool. Other tech stocks, including Advanced Micro Devices and Intel, also saw gains, contributing to Nasdaq's eleventh record close of the year.
Source: CNBC
