Nvidia Up Another 3% in Mixed Day for Wall Street

Dow, S&P 500 were flat in first trading since debt deal was announced
By Newser Editors and Wire Services
Posted May 30, 2023 3:50 PM CDT
Dow, S&P 500 Flat in First Trading Since Debt Deal
Traders work the floor at the New York Stock Exchange, Friday, May 26, 2023, in New York.   (AP Photo/John Minchillo)

Wall Street ended mixed Tuesday as a long list of worries loomed over the market, even if the most pressing crisis seems to be calming after Washington moved to avoid a default on its debt. The S&P 500 edged up by 0.07, or less than 0.1%, to 4,205.52, hovering close to its highest level since August. The Dow Jones Industrial Average slipped 50.56 points, or 0.2%, to 33,042.78. The Nasdaq composite, meanwhile, led the market with a 0.3% gain as excitement keeps building about artificial intelligence, the AP reports. It rose 41.74 to 13,017.43.

Tuesday marked the US stock market's first trading since President Biden and House Speaker Kevin McCarthy struck a deal to allow the US government to borrow more money, which would let it avoid a default on its debt. They now must convince Congress to approve it before the US government runs out of cash to pay its bills, which could happen as soon as Monday.Some on Capitol Hill are unhappy about the deal’s details, and Biden and McCarthy are both working to gather votes. The House could vote on the matter Wednesday.

Beyond the drama around the nation’s debt limit, financial markets have been battling a long list of concerns. The economy is slowing, inflation is still high and interest rates may be heading even higher, which would further tighten the reins on the economy and financial markets. Still, US stocks have rallied recently after companies reported drops in profit for the start of the year that weren’t as bad as feared. And at the center of it has been Wall Street’s growing frenzy over AI.

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Nvidia, whose chips are helping to power the tech world’s newest rush, rose another 3% after already more than doubling this year. Last week, it gave a monster forecast for upcoming revenue as it described customers of all kinds racing to apply AI to their businesses. Its market capitalization briefly rose above $1 trillion during trading Tuesday, though it was slightly below that figure by the end of the day. The huge gains are raising worries about another possible bubble sweeping the stock market. But evangelists say AI is the next big revolution to reshape the global economy. (More stock market stories.)

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