Stock market today: Stocks turn lower as Nvidia dips from record
06/20/2024 23:48
Nvidia's record-breaking surge, which catapulted it to the title of world's most valuable public company, was set to continue.
US stock indexes flirted with record highs on Thursday after the S&P 500 (^GSPC) briefly crossed 5,500 for the first time ever as Nvidia (NVDA) continued a record-breaking surge that has catapulted it to the title of world's most valuable public company.
The S&P 500 hovered near the flatline after the index secured its 31st record close of the year on Tuesday. The tech-heavy Nasdaq Composite (^IXIC) touched new highs earlier in the session before falling 0.3%. The Dow Jones Industrial Average (^DJI) rose roughly 0.3%.
After a holiday break on Wednesday, Wall Street looked set to continue its winning ways in 2024. Stocks' growth story this year has been largely driven by the excitement around AI's potential, and no company has captured the collective attention like Nvidia. Its stock was up as much as 3% before paring gains. Shares are still up more than 170% so far this year.
On Tuesday, Nvidia completed a remarkably quick surge to usurp Microsoft (MSFT) as the most valuable company in the world — just two weeks after it dethroned Apple (AAPL) as the No. 2 most valuable company. Its rise to the top has come so fast, Yahoo Finance's Jared Blikre wrote, that some more passive investors haven't been able to keep up.
Elsewhere on Thursday, global central banks were in focus as the Swiss National Bank cut rates for the second time this year. The Bank of England kept its benchmark rate at a 16-year high, but signals pointed to a rate cut in the summer.
In the US, meanwhile, most traders continue to bet on a Fed cut by September, according to the CME FedWatch tool. The biggest piece of economic data came in the form of weekly jobless claims, which showed a dip of 5,000 to 238,000 last week versus a consensus expectation of 235,000.
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Dell, Super Micro stocks on the move after Musk says companies will supply hardware for xAI
Shares of Dell (DELL) and Super Micro Computer (SMCI) popped Thursday after xAI Founder Elon Musk said the companies are providing hardware for the supercomputer his AI startup is building.
As Yahoo Finance's Hamza Shaban reports, the moves higher underscore Wall Street's excitement around AI technology.
Investors are clamoring to buy into AI businesses at every level of development, from major consumer-facing brands selling AI-powered apps to manufacturers providing the chips and servers powering the computing infrastructure.
Shares of Dell rose as high as 5% Thursday while Super Micro's stock climbed nearly 9% before paring gains.
Dell's CEO Michael Dell set up the jump for his company's share price when he said in a post on X Wednesday, “We’re building a Dell AI factory with Nvidia to power Grok for xAI."
Energy stocks lead gains
Energy-related stocks led Thursday's gains, with the S&P 500 Energy Select ETF (XLE) up more than 1%, helping boost the S&P 500 (^GSPC) to new highs.
Oil giants ExxonMobil (XOM) and Chevron (CVX) each rose more than 1.5%. The energy sector has gained more than 7% this year compared to the broader benchmark's 15% year-to-date gains.
On Thursday, the S&P 500 rose as much as 0.5%, briefly crossing the 5,500 level for the first time.
Trending tickers on Thursday
The top trending tickers on Yahoo Finance on Thursday were all tech-related.
Nvidia (NVDA)
Shares of the chip giant rose as much as 3% Thursday morning, climbing to new highs. Earlier this week Nvidia overtook Microsoft (MSFT) as the most valuable company in the world.
Dell Technologies (DELL)
Dell stock rose after CEO Michael Dell revealed the hardware giant was collaborating with Nvidia to construct an AI factory for xAI, Elon Musk's artificial intelligence venture.
"We’re building a Dell AI factory with @nvidia to power @grok for @xai @elonmusk," wrote Dell on X on Wednesday.
Super Micro Computer (SMCI)
SMCI jumped more than 8% after billionaire Elon Musk indicated that his artificial intelligence startup xAI will utilize Dell and Super Micro Computer's server racks.
Year to date the stock is up more than 240%.
S&P 500 crosses 5,500 for first time ever, Nasdaq also climbs to new highs
The S&P 500 (^GSPC) crossed the 5,500 level for the first time on Thursday as Nvidia (NVDA) stock continued its steady climb.
The broader index rose 0.5% after notching its 31st record close of the year on Tuesday.
Tech-heavy Nasdaq Composite (^IXIC) inched 0.3% higher to also touch record highs during Thursday's session.
The Dow Jones Industrial Average (^DJI) rose 0.3%.
Housing starts hit 4-year low as construction 'continues to falter'
New government data released Thursday showed construction activity for residential housing tumbled to the lowest level in four years.
Housing starts declined 5.5% in May from the previous month to a seasonally adjusted rate of 1.277 million. Economists polled by Bloomberg were expecting starts to come in at 1.370 million.
“The drop in housing starts in May is consistent with the recent slowdown in permit issuance, pointing to construction continuing to falter this year,” Thomas Ryan, North America economist at Capital Economics, wrote after the release.
“This challenges our forecast that construction, particularly in the single-family sector, would flourish this year given the lack of alternatives for buyers in the resale market.”
Separate data released Wednesday showed that homebuilders are losing confidence about the housing market. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) fell to a five-month low of 43 in June. Builders noted that 7% mortgage rates were the culprit, pushing many would-be buyers to the sidelines.
S&P 500 hits new high as Nvidia continues to climb
The Nasdaq and S&P 500 opened higher on Thursday as shares of Nvidia (NVDA) continued to climb.
The S&P 500 (^GSPC) gained roughly 0.4% to hit a fresh record high after notching its 31st record close of the year on Tuesday. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.3%. The Dow Jones Industrial Average (^DJI) fell just below the flatline.
Nvidia became the world's most valuable public company on Tuesday. Its ascension following the Juneteenth holiday continued on Thursday morning as shares rose more than 2%.
