Wall Street continues its rise and ends with new records

(New York) The New York Stock Exchange ended higher on Tuesday, with new closing records for the NASDAQ and S&P 500 indices, while the semiconductor giant finished for the first time , with the rank of first world market capitalization.

The NASDAQ and S&P 500 gained 0.03% and 0.25%, respectively, while the Dow Jones gained 0.15%.

This is the seventh consecutive record for the NASDAQ. As for the S&P 500, it reached its 31st on Tuesday^e all-time high since the start of the year.

The session was marked by the coronation of Nvidia (+3.51%), which overtook Microsoft and Apple in the world ranking of companies with the heaviest weight on the stock market.

At the close, the Santa Clara (California) group, standard bearer of the generative artificial intelligence (AI) revolution, had a market valuation of $3,335 billion.

“The semiconductor industry is now the leading sector in the S&P 500,” noted Angelo Zino, CFRA analyst. “She has taken control over the last 15 or 18 months. It shows you how much the world has changed. »

Since the launch of ChatGPT in November 2022, Nvidia’s capitalization has increased eightfold.

Some of its competitors followed its rise on Tuesday, in particular Qualcomm (+2.19%), Arm (+8.63%) and Micron (+3.80%).

At the start of the day, the New York Stock Exchange was stimulated by the American central bank (Fed), according to which industrial production in the United States increased by 0.9% in May over one month, a surprise while the Economists expected an increase of only 0.3%.

Part of this discrepancy is attributable to downward revisions of the two previous figures, for March and April.

“This benefited cyclical stocks”, that is to say theoretically sensitive to the economy, underlined Art Hogan, analyst at B. Riley Wealth Management, mentioning, in particular, the industry. Dow (+0.38%), Caterpillar (+0.85%) and Home Depot (+1.25%) were thus noted.

Beyond sectoral specificities, “the market is finally taking note of the fact that bond rates are falling,” explained Art Hogan.

The yield on 10-year US government bonds stood at 4.21%, compared to 4.28% the day before at the close.

The mood in the New York market was not dampened by the poor retail sales figure, which only rose 0.1% over one month in May, compared to 0.2% predicted by economists. .

“If we smooth over three months, we are at around 2% growth” in retail sales, recalled Art Hogan. “It’s slower than last year, but we are far from a collapse in consumption. »

“We therefore have the perfect scenario of a soft landing” of the American economy and, as far as the Fed is concerned, “a probable rate cut in September is gradually registering in the minds of investors,” added this analyst.

On the market, Donald Trump’s media group (Trump Media and Technology Group) lost (-9.82%). It still lost almost 20% in electronic exchanges after the close, approaching its lowest level since its IPO at the end of March.

Hewlett Packard Enterprise (HPE) shone (+1.44%) after the announcement of the launch of a product offering developed jointly with Nvidia.

Dell also did well (+5.01%) thanks to a favorable rating from Bank of America, which highlighted the group’s potential in the generative AI segment for businesses.

Unlike Nvidia, most of the “tech” behemoths were subject to profit taking, in particular Meta (-1.41%) and Alphabet (-1.30%).

Boeing dropped 1.91%. During a hearing before a US Senate investigative committee, the group’s general manager, Dave Calhoun, recognized the “seriousness” of the situation in which the aircraft manufacturer finds itself.