The Market News Today: Nvidia’s Surge Propels Global Tech Stocks to New Heights

James Hyerczyk
Updated: Jun 19, 2024, 18:58 GMT+00:00

Key Points:

  • Tech rally pushes global stocks to record highs.
  • Nvidia becomes world's most valuable company, surpasses Microsoft.
  • Nvidia's rise boosts tech stocks in Asia, Japan, and Korea.
  • U.S. official urges Japan to tighten chip export restrictions to China.
  • Bitcoin and cryptocurrencies drop amid economic concerns.
The Market News Today

Tech Rally Pushes Global Stocks to Record Highs

Global stocks hit record highs Wednesday, driven by a surge in tech shares. Nvidia became the world’s most valuable company, surpassing Microsoft. Soft U.S. retail sales data suggested possible rate cuts this year. The MSCI All-World index rose 0.2%, while Nasdaq 100 futures increased 0.2%. European stocks remained steady, and the British pound edged higher after hitting the Bank of England’s inflation target. U.S. markets are closed today, leading to expected muted trading.

Nvidia Becomes World’s Most Valuable Company, Surpasses Microsoft

Nvidia’s stock surged 3.5% to $135.58 on Tuesday, making it the world’s most valuable company with a market cap of $3.335 trillion, surpassing Microsoft. Nvidia’s rise has driven optimism about AI, pushing S&P 500 and Nasdaq to record highs. Despite its success, some investors fear an AI spending slowdown. Nvidia now dominates trading, accounting for 16% of S&P 500 activity, with daily turnover averaging $50 billion. Its stock has nearly tripled this year.

Nvidia’s Rise Boosts Tech Stocks in Asia, Japan, and Korea

Nvidia’s surge to a $3.34 trillion market cap has boosted global tech stocks. Taiwan Semiconductor Manufacturing Corp (TSMC) rose 4.34%, and Hon Hai Precision Industry (Foxconn) gained 4.78%. Japan’s Advantest increased 3.86%, and SoftBank Group Corp climbed 4.19%. South Korea’s Samsung Electronics and SK Hynix saw gains of 3.38% and 7.04%, respectively. Nvidia’s success, driven by AI advancements, has significantly impacted semiconductor and tech-related stocks worldwide.

U.S. Official Urges Japan to Tighten Chip Export Restrictions to China

A U.S. official is visiting Japan after meeting with Dutch officials to urge stricter controls on semiconductor exports to China. Alan Estevez, the U.S. export policy chief, aims to build on a 2023 agreement among the U.S., Japan, and the Netherlands to restrict chipmaking equipment that could enhance China’s military. The U.S. seeks to add 11 more Chinese factories to a restricted list and control additional chipmaking equipment exports.

Bitcoin and Cryptocurrencies Drop Amid Economic Concerns

Bitcoin fell 3% to $64,680.44, its lowest since May 16, amid global economic worries and low summer liquidity. Ether declined 4% to $3,401.37. Other cryptocurrencies faced steeper losses: XRP dropped 6%, Solana fell 7%, and Dogecoin tumbled 11%. CEO Marko Jurina cited economic uncertainty and geopolitical issues as factors. Coinbase shares fell 3%, and MicroStrategy dipped 1%. Bitcoin struggles to maintain momentum, down 4% for the month and 9% for the quarter.

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.

Did you find this article useful?