Stock Market Overview: Nasdaq Surges Past 18,000 as Amazon and Nvidia Lead the Rally
Original article by Ed Carson, published on TradingNews.com
In a strong start to the trading week, the Nasdaq Composite broke through the 18,000 mark for the first time ever, fueled by impressive gains in major tech stocks. Amazon (AMZN) surged on news tied to artificial intelligence growth and a reported buy call from Wall Street, while Nvidia (NVDA) maintained its record-breaking pace, holding above a $3 trillion market cap amid expanding investor optimism regarding AI dominance.
Market Highlights on Monday:
– The Nasdaq composite gained 0.95% to close at 18,000.06, setting a fresh all-time high.
– Amazon stock rose more than 3%, notching a 52-week high.
– Nvidia dipped slightly in afternoon trading but still held above the $3 trillion valuation mark, a historic milestone.
– The S&P 500 gained 0.26%, riding momentum from tech stocks.
– The Dow Jones Industrial Average lagged, slipping 0.18% due to weakness in energy and consumer staples.
These moves come ahead of significant catalysts due later in the week including key inflation data and a Federal Reserve interest rate decision.
Amazon Stock Fuels Nasdaq Surge
Amazon helped lead the Nasdaq to new heights as shares climbed more than 3% to close at 186.21. The boost came after Bernstein upgraded Amazon to “outperform,” citing confidence in the company’s growing lead in artificial intelligence. Amazon Web Services (AWS) remains a pivotal revenue driver, and the expansion of AI infrastructure has emboldened investors predicting extended revenue gains.
Key factors behind the AMZN rally:
– Bernstein’s analyst Mark Shmulik cited expectations for margin expansion in AWS and operational efficiencies in the North American e-commerce business.
– Amazon’s impressive growth in generative AI through its Bedrock platform and recent AI chip developments have increased analysts’ bullishness.
– AMZN stock is up more than 20% year-to-date, outperforming many peers in the tech mega-cap space.
Nvidia Continues Historic Run
Although Nvidia briefly dipped by 0.7% mid-session, it recovered to stay above its $3 trillion valuation. The chip giant’s rapid dominance in the AI space has made it the third most valuable company in the world, behind Apple and Microsoft.
Driving Nvidia’s strength:
– Continued demand for high-performance GPUs used in AI model training and inference.
– Record earnings growth, with quarterly profits surging nearly 600% year-over-year.
– Expanding global footprint as demand for its H100 and upcoming Blackwell chips accelerates.
Last week, Nvidia briefly surpassed Apple in valuation. Although Apple reclaimed the second-place spot Monday, Nvidia continues to attract institutional buying and significant media buzz due to its key role in the AI revolution.
Other Tech Leaders Show Strength
Several other big tech stocks contributed to Monday’s rally. The so-called “Magnificent Seven” names helped keep the S&P 500 and Nasdaq in record territory.
Top performers included:
– Google parent Alphabet (GOOGL) rose 1.3% on optimism about Gemini AI product rollout and cost reductions announced in cloud and search divisions.
– Microsoft (MSFT) ended near breakeven but continues to hover near all-time highs as its Copilot AI tools gain traction in enterprise productivity tools.
– Meta Platforms (META) advanced 2.2% as smartphone advertisers are regaining pace and Reels continues to drive engagement.
The collective strength in top-tier tech illustrates that investor appetite for innovation-driven companies remains strong, especially ahead of key AI software releases expected in late 2024.
Investors Eye CPI and Federal Reserve
While Monday’s gains were impressive, traders are keeping a close watch on the upcoming economic events that could introduce volatility. Two of the most notable this week are:
1. May Consumer Price Index (CPI) report: Due Wednesday morning
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