Nvidia’s stock saw a rollercoaster day on Thursday, June 20, 2024, initially surging to a historic high and boosting the S&P 500 to a new record before a subsequent retreat led to a pullback in major indices. After reaching a market capitalization of over $3.43 trillion, Nvidia’s shares ended the day with a loss of more than 3%, marking a rare dip for the AI chip giant and putting an eight-week winning streak at risk. This pullback contributed to the S&P 500 and Nasdaq Composite retreating from their record highs, with the S&P 500 slipping 0.3% and the Nasdaq falling 0.8%. The Dow Jones Industrial Average, however, managed to gain 0.8%. The mixed market performance was influenced by a combination of Nvidia’s volatility and broader economic concerns, including higher-than-expected weekly jobless claims, a slowdown in housing and consumer spending, and the Federal Reserve’s cautious stance on interest rates. The technology sector led the decline among the S&P 500’s sectors, while energy and utilities posted gains. Despite the day’s losses, Nvidia’s year-to-date performance remains impressive, driven by explosive growth in the AI sector and sustained consumer spending. Investors and market strategists are closely watching for signs of a potential market top, with some expressing concerns about the concentration of gains in a small number of growth stocks and the possibility of an AI bubble.
Key points
- Nvidia’s stock reached a historic high surpassing $3.
- Economic concerns and Federal Reserve comments on interest rates contributed to the market’s mixed performance.
- Despite the day’s fluctuations, Nvidia’s year-to-date growth remains strong due to the AI sector’s boom.
43 trillion in market cap but later declined over 3%, influencing a pullback in the S&P 500 and Nasdaq from record highs.
