The S&P 500 is approaching a new record high after Nvidia moved from being the world's third-largest company to second place.
The Standard & Poor's 500 index rose 1.18% and closed at 5,354.04 points. Industrial heavyweight Dow Jones rose 0.25 percent to 38,897.45 points, while the tech-heavy Nasdaq rose 1.96 percent to 17,187.90 points.
Figures from the ADP Research Institute showed on Wednesday that 152,000 new private sector jobs were created in the United States in May. This was much lower than expectations initially, and is explained by the sharp decline in the manufacturing industry. Wall Street hopes the numbers give the Federal Reserve enough evidence to cut benchmark interest rates, CNBC reported. Expectations indicate a 69% chance of interest rate cuts in September.
The 10-year US Treasury yield continues to decline, falling 0.04 percent on Wednesday to 4.29. The volatility index – the VIX – fell 3.42 percent to 12.71.
Looking ahead, Wall Street is looking towards the important non-farm payrolls report scheduled for release on Friday. Investors want the labor market to be weak enough for the central bank to cut interest rates, but not so weak that it raises concerns about a potential recession, CNBC reported.
movements
Nvidia has continued its AI-driven rise, now surpassing Apple. The company grew to a new record high on Wednesday, reaching $3 trillion in market value. The chip manufacturer unveiled new chipsets at the beginning of the week, triggering a peak on the stock market. Bank of America said on Wednesday that Nvidia stock could rise another 30 percent.
Taiwan Semiconductor Manufacturing Company also participated in the chip party and rose 6.87 percent to $162.94. It came after Barclays raised its price target on the stock to $170 a share from $150, and the company said a new generation of more advanced chips, referred to as 2nm, should benefit the semiconductor maker given its dominant market share.
Hewlett-Packard (HP) shares rose by more than 10 percent after achieving results that exceeded expectations. HP reported adjusted earnings per share of 42 cents and revenue of $7.2 billion.
GameStop stock rose about 18 percent after yesterday's decline. The share rose 30 percent this week.
The largest technology companies have accounted for a large portion of the US stock market's rise in recent years, and on Wednesday the wind was blowing in their sails. That's how things worked out for owners of Facebook Meta, Amazon, Netflix, Apple, and Alphabet (also known as FAANG stocks).
- Facebook shares rose 3.79 percent to $495.06.
- Amazon shares rose 1.08 percent to $181.28.
- Apple shares rose 0.78 percent to $195.87.
- Netflix shares rose 2.95 percent to $650.27.
- Alphabet shares rose 0.93 percent to $175.41.
New stock exchange
TXSE Group, backed by BlackRock and Citadel Securities, announced Wednesday that it plans to launch the Dallas-based Texas Stock Exchange. The exchange, which has raised nearly $120 million, plans to begin operating as a national securities exchange early this year.
The Texas Stock Exchange aims to attract listings on and off the Nasdaq and New York Stock Exchanges regarding costs, as well as newer rules that include board diversity at Nasdaq-listed companies.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
