(New York) The New York Stock Exchange ended higher on Wednesday, inspired by the day’s indicators and the fascinating rise of Nvidia, whose market capitalization is now greater than that of Apple.
The NASDAQ (1.96%) and the S
Shortly before the close, semiconductor giant Nvidia (5.16%) became the third company to cross the symbolic threshold of $3 trillion in market capitalization, subsequently closing above it.
Nvidia even closed above Apple (0.78%), moving into second place, behind Microsoft.
The insatiable demand for the Santa Clara (California) group’s chips, highly prized for the development of so-called generative artificial intelligence (AI), has catapulted the group’s valuation, multiplied by nearly eight (7.8) in 18 month.
It even accelerated the pace by presenting a new processor on Sunday, less than three months after the introduction of the previous model, in a sector historically accustomed to interspersing its releases by several years.
Nvidia’s new outburst completed a session already on the right track after two indicators well received by investors.
Before the opening of the New York market, the ADP firm revealed that the private sector had created 152,000 jobs in May, less than the 175,000 creations anticipated by economists and below the 188,000 new positions in April .
Subsequently, the ISM institute indicated that its activity index in the services sector in the United States rose to 53.8% in May, compared to 49.4% in April. A number above 50% means the business is growing.
“While the ISM index for the manufacturing sector suggested an economic slowdown, that of services signals a rebound after weak growth in the first quarter,” commented Matthew Martin of Oxford Economics in a note.
Operators also appreciated seeing the component of the index relating to prices paid weaken, which suggests a lull in inflation.
After these publications, the yield on 10-year US government bonds fell to 4.27%, the lowest in two months, compared to 4.32% the day before at the close.
“Recently, indicators had raised some doubts about the ability of the American economy to make a soft landing,” he recalls. “But seeing the ISM index pick up speed and return to expansion has calmed some of these concerns and restored credibility to the controlled landing scenario.”
In terms of the rating, behind Nvidia, competitors AMD (3.86%), Qualcomm (3.68%) and Broadcom (6.18%) also made sparks, as did Meta (3.79%) and Netflix (2.95%).
The sector was also encouraged by several good publications, notably Hewlett Packard Enterprise (10.68%), whose results and forecasts exceeded expectations.
The group is taking full advantage of companies’ appetite for artificial intelligence (AI), with its turnkey infrastructures.
Furthermore, “we have seen other stocks stand out, not just large technology caps,” pointed out Patrick O’Hare.
Goldman Sachs (1.40%), Dow (0.98%) and Walmart (0.74%) thus benefited from the movement.
Textile group HanesBrands soared (4.95%) after revealing the upcoming sale of sportswear brand Champion for $1.2 billion to Authentic Brands Group, which already has a large portfolio of ready-to-wear names. -wear like Quicksilver or Reebok.