Nvidia Leads Nasdaq, S&P 500 to Record High Closes

  • S&P 500 exceeds 5,600 for first time
  • TSMC up on strong second-quarter revenue growth
  • Intuit to lay off about 1,800 workers; shares fall
  • S&P 500 +1.02%, Nasdaq +1.18%, Dow +1.09%

July 10 (Reuters) – The Nasdaq and S&P 500 indexes closed at record highs on Wednesday, boosted by earnings from Nvidia and other Wall Street heavyweights ahead of inflation data and quarterly earnings reports due this week.

It was the seventh consecutive close for the Nasdaq at a record high and the sixth in a row for the S&P 500. The S&P 500 surpassed 5,600 for the first time since Federal Reserve Chairman Jerome Powell raised expectations for a rate cut in September.

During his second day of testimony before Congress, Powell said he was not ready to conclude that inflation was on a sustained path toward 2%, although he expressed “some confidence in that.”

Philadelphia Semiconductor Index (.SOX)opens a new tab rose 2.4% to a record after contract manufacturer Taiwan Semiconductor Manufacturing Co. reported strong quarterly revenue.

“The TSMC report validated the theory of artificial intelligence, which more than anything else is a pretty significant data point today,” said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta.

Micron Technology (MU.O)opens a new tab increased by 4%, Nvidia (NVDA.O)opens a new tab rose by 2.7%, and Advanced Micro Devices (AMD.O)opens a new tab added 3.9%.
Apple (AAPL.O)opens a new tab rose 1.9% to a record high, increasing the company’s market value to $3.6 trillion.
With only a handful of large-cap stocks leading the gains on Wall Street this year, some investors are concerned about a potential sell-off if earnings from these companies fail to meet lofty expectations.

The S&P 500 index rose by 1.02% and ended the session at 5,633.91 points.

The Nasdaq gained 1.18% to 18,647.45 points, while the Dow Jones Industrial Average rose 1.09% to 39,721.36 points.

Item 1 of 2 Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York, U.S., June 24, 2024. REUTERS/Brendan McDermid/File photo

The S&P 500 is up 18% in 2024, and the Nasdaq is up 24%.

All 11 S&P 500 sector indexes rose on Wednesday, led by information technology (.SPLRCT)opens a new tab1.63% increase followed by 1.34% increase in materials (.SPLRCM)opens a new tab.

Trading volume on US exchanges was relatively small at 10 billion shares, while the average trading volume over the previous 20 sessions was 11.5 billion shares.

US inflation data due out this week includes the Consumer Price Index (on Thursday) and the Producer Price Index (on Friday).

Expectations of a 25 basis point rate cut by September have risen to 74% from about 70% on Tuesday and 45% a month ago, according to CME’s FedWatch data.

The second-quarter earnings season, which begins this week with the release of reports by major banks on Friday, will be a test of whether fast-growing, large-cap companies can justify their high valuations and extend their winning streak.

Intuition (INTU.O)opens a new tab fell 2.6% after the TurboTax owner said it planned to lay off about 10% of its workforce.
Gene sequencing equipment manufacturer Illumina (ILMN.O)opens a new tab The company’s shares rose more than 6% after it announced it was acquiring privately held Fluent BioSciences.
The S&P 500 (.AD.SPX) Index saw rising stocks outnumber falling stocksopens a new tab in a ratio of 4.3 to one.

The S&P 500 posted 33 new highs and 11 new lows; the Nasdaq posted 65 new highs and 117 new lows.

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Reporting by Noel Randewich in Oakland, California, and Lisa Mattackal and Ankika Biswas in Bengaluru; Editing by Pooja Desai and David Gregorio

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