Nasdaq 100, Dow Jones, S&P 500 News: Tech and Semiconductor Stocks Propel Gains

James Hyerczyk
Updated: Jun 20, 2024, 15:54 GMT+00:00

Key Points:

  • Nvidia's shares rise 3.1%, helping the S&P 500 and Nasdaq hit record highs. The AI chip leader's growth continues to drive market gains.
  • Marvell Technology and AMD stocks climb, contributing to a strong performance in the semiconductor sector. Tech stocks lead the market rally.
  • Unemployment claims decrease, indicating a strong job market despite mixed housing data. Economic indicators are closely watched for rate cut signals.
Nasdaq 100, Dow Ones, S&P 500 News

S&P 500 Hits Record High as Nvidia Leads Rally

The benchmark S&P 500 reached a record high on Thursday, propelled by significant gains in Nvidia and favorable economic data. Investors are closely analyzing recent economic indicators and Federal Reserve commentary to predict the timing of potential interest rate cuts this year.

Nvidia Drives Market Surge

Nvidia’s shares soared 3.1% to a new peak, reinforcing its position as the world’s most valuable company. This rally was fueled by news of server orders from Dell and Super Micro Computer for Elon Musk’s AI startup. Dell and Super Micro saw their shares rise by 5.5% and 9.2%, respectively. Nvidia’s ascendancy, having recently overtaken Microsoft, has been a major catalyst for the S&P 500 and Nasdaq reaching record highs.

Semiconductor Sector Boost

Other semiconductor stocks also performed well. Marvell Technology and Advanced Micro Devices saw gains of 2.3% and 4.5%, respectively. The S&P 500 Technology index hit a record high, driven by a 5.7% increase in Accenture’s stock after the IT services provider forecasted annual revenue growth above estimates.

Economic Indicators and Fed Commentary

New claims for unemployment benefits fell last week, indicating a resilient job market despite some cooling. However, single-family homebuilding in the U.S. decreased in May due to high mortgage rates. Paul Nolte, senior wealth advisor and market strategist at Murphy & Sylvest, noted that while housing data was mixed, it did not significantly impact the financial markets.

Minneapolis Fed President Neel Kashkari stated that achieving the 2% inflation target might take one to two years, suggesting rates could remain high longer than anticipated. Current money market data shows a 58% chance of a 25-basis point rate cut by the U.S. Federal Reserve in September.

Market Movers and Regulatory Updates

Hewlett Packard Enterprise shares rose 2.2% amid an investigation by Britain’s competition regulator into its planned $14 billion acquisition of Juniper Networks, examining potential competition concerns. Meanwhile, Trump Media & Technology Group plummeted 14.1% due to potential equity dilution following the SEC’s approval of a resale filing, providing the company with approximately $247 million in proceeds.

Market Forecast

Given the robust performance of technology and semiconductor stocks, coupled with mixed economic data and cautious optimism about potential rate cuts, the short-term outlook for the S&P 500 appears bullish. Traders should watch for continued strength in tech and semiconductor sectors as well as upcoming economic indicators for further market direction.

Technical Analysis

Daily E-mini S&P 500 Index

E-mini S&P 500 Index futures are grinding higher on Thursday. There is no resistance. Most investors have adopted the “trend is your friend” style and who could argue with them with the benchmark seemingly making a record high daily.

Nonetheless, the market is getting a little “hot” as it pulls away from the 50-day moving average at 5315.67. I think it’s best to throw out conventional “overbought” indicators. Some have had you selling all the way up. Continue to focus on the chart pattern of higher-highs and higher-lows. A break in this pattern will be the best sign that something is amiss.

Even if it’s just to alleviate some of the upside pressure, investors should start to watch for topping signals, especially with volatility expected to be highlighted on Friday. The VIX is also indicating complacency, which is usually the best time to catch investors off-guard. Triple-Witch on Friday along with an ETF rebalancing could produce some fireworks. Stay nimble.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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