Nvidia Closes With Market Cap Over $1T

Markets welcomed report on cooling inflation
By Newser Editors and Wire Services
Posted Jun 13, 2023 4:42 PM CDT
Stocks Rise After Report on Cooling Inflation
Traders work on the floor at the New York Stock Exchange.   (AP Photo/Seth Wenig)

Stocks rose Tuesday after a cooler reading on inflation cemented Wall Street’s bets for the Federal Reserve to hold off on hiking interest rates this week. The US stock market has been on a roll amid hopes the economy can avoid a severe recession and inflation will fall enough for the Federal Reserve to take it easier on its rate increases, the AP reports. Tuesday’s report showed that food, fuel, and other prices for consumers were 4% higher in May than a year earlier, the latest slowdown from its peak above 9% last summer. The Dow Jones Industrial Average rose 145.8 points, or 0.43%, to 34,212.12. The S&P 500 rose 30 points, or 0.69%, to 4,369.01, and the Nasdaq was up 111.4 points, or 0.83%, to 13,573.32.

Oracle rose 0.2% after reporting stronger profit for the latest quarter than expected. It also announced plans to develop artificial-intelligence services for organizations. A rush into AI has helped a select group of stocks to huge gains this year, driving much of the stock market’s rally. Nvidia rose 3.9% Tuesday to raise its gain for the year to almost 187%. That’s raised concerns about a possible bubble, though supporters say AI is the next revolution to remake the economy. The stock closed with a total market capitalization of more than $1 trillion for the first time, the Wall Street Journal reports. MarketWatch notes that the chipmaker is only the seventh publicly traded US company to hit that milestone.

A survey of global fund managers by Bank of America found the majority believe widespread adoption of AI in the next two years will increase profits, according to a BofA Global Research report. That survey, though, also said the majority of fund managers believe the Fed is still not done hiking interest rates. Many traders expect the Fed to resume raising rates in July, even if it holds steady this week.

(More stock market stories.)

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