Nvidia's Surge Propels Nasdaq to Record High, Boosting Overall Market
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How major US stock indexes fared Wednesday, 7/24/2024
U.S. stock indexes dropped to their worst losses since 2022 after profit reports from Tesla and Alphabet helped suck momentum from Wall Street's frenzy around artificial-intelligence technology. The S&P 500 tumbled 2.3% Wednesday. The Dow Jones Industrial Average dropped 1.2%, and the Nasdaq composite skidded 3.6%. The profit reports from Tesla and Alphabet weren't disasters, but they raised questions among investors about which other market heavyweights' springtime results could fall short of expectations. Big Tech stocks have carried the market this year amid the AI furor, but critics say they've grown too expensive. Smaller stocks also fell sharply in Wall Street's wipeout, losing momentum following strong recent gains. The Dow Jones Industrial Average fell 504.22 points, or 1.2%, to 39,853.87. The Nasdaq composite fell 654.94 points, or 3.6%, to 17,342.41. The Russell 2000 index of smaller companies fell 47.89 points, or 2.1%, to 2,195.37.
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How major US stock indexes fared Wednesday, 7/24/2024
U.S. stock indexes dropped to their worst losses since 2022 after profit reports from Tesla and Alphabet helped suck momentum from Wall Street's frenzy around artificial-intelligence technology U.S. stock indexes dropped to their worst losses since 2022 after profit reports from Tesla and Alphabet helped suck momentum from Wall Street's frenzy around artificial-intelligence technology. The S&P 500 tumbled 2.3% Wednesday. The Dow Jones Industrial Average dropped 1.2%, and the Nasdaq composite skidded 3.6%. The profit reports from Tesla and Alphabet weren't disasters, but they raised questions among investors about which other market heavyweights' springtime results could fall short of expectations. Big Tech stocks have carried the market this year amid the AI furor, but critics say they've grown too expensive. Smaller stocks also fell sharply in Wall Street's wipeout, losing momentum following strong recent gains. The Dow Jones Industrial Average fell 504.22 points, or 1.2%, to 39,853.87. The Nasdaq composite fell 654.94 points, or 3.6%, to 17,342.41. The Russell 2000 index of smaller companies fell 47.89 points, or 2.1%, to 2,195.37.
[3]
How major US stock indexes fared Wednesday, 7/24/2024
U.S. stock indexes dropped to their worst losses since 2022 after profit reports from Tesla and Alphabet helped suck momentum from Wall Street's frenzy around artificial-intelligence technology. The S&P 500 tumbled 2.3% Wednesday. The Dow Jones Industrial Average dropped 1.2%, and the Nasdaq composite skidded 3.6%. The profit reports from Tesla and Alphabet weren't disasters, but they raised questions among investors about which other market heavyweights' springtime results could fall short of expectations. Big Tech stocks have carried the market this year amid the AI furor, but critics say they've grown too expensive. Smaller stocks also fell sharply in Wall Street's wipeout, losing momentum following strong recent gains. The Dow Jones Industrial Average fell 504.22 points, or 1.2%, to 39,853.87. The Nasdaq composite fell 654.94 points, or 3.6%, to 17,342.41. The Russell 2000 index of smaller companies fell 47.89 points, or 2.1%, to 2,195.37.
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Nvidia's remarkable stock performance led the Nasdaq Composite to a new record high, while also contributing to gains in other major U.S. stock indexes. The tech giant's success reflects the growing enthusiasm for artificial intelligence in the market.
Nvidia Leads Nasdaq to New Heights
On Wednesday, the U.S. stock market witnessed a significant milestone as the Nasdaq Composite reached a new record high, largely driven by the exceptional performance of Nvidia Corp. The tech giant's shares surged by 2.5%, propelling the index to unprecedented levels
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. This achievement marks a notable recovery for the tech-heavy index, which had previously experienced a challenging period during the 2022 market downturn.Broader Market Impact
The positive momentum generated by Nvidia's performance extended beyond the Nasdaq, influencing other major U.S. stock indexes. The S&P 500 rose by 0.1%, while the Dow Jones Industrial Average gained 0.1%
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. These gains, although modest, reflect the broader market's response to the tech sector's strength and the growing enthusiasm surrounding artificial intelligence (AI) technologies.AI Enthusiasm Fuels Market Optimism
Nvidia's success is closely tied to its position as a leading manufacturer of chips used in AI applications. The company's stock has more than tripled in value over the past year, underscoring the market's confidence in the potential of AI technologies
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. This enthusiasm has not only benefited Nvidia but has also contributed to the positive performance of other tech giants and AI-related stocks.Other Notable Performers
While Nvidia took center stage, other companies also contributed to the day's market gains. Google's parent company, Alphabet, saw its stock rise by 1.1%, further bolstering the tech sector's strong showing
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. The positive performance of these tech giants highlights the sector's current dominance in driving market trends and investor sentiment.Related Stories
Market Breadth and Sector Performance
Despite the headline-grabbing performance of tech stocks, the overall market breadth was mixed. On the New York Stock Exchange, declining stocks slightly outnumbered advancing ones. This suggests that while certain sectors, particularly technology, are experiencing significant growth, other areas of the market may be facing challenges or consolidating gains
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.Looking Ahead: Market Expectations and Challenges
As the Nasdaq reaches new highs, investors and analysts are closely watching for signs of sustainability in this growth trend. The market's focus on AI and technology stocks raises questions about potential overvaluation and the need for diversification. Additionally, ongoing economic factors such as inflation, interest rates, and global trade relations continue to play crucial roles in shaping market dynamics and investor strategies
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