Market indices had a mixed day of trading, with the Dow Jones being the only one in the green at +0.20%. The S&P 500 finished slightly down at -0.02%, the Nasdaq was down -0.09%, and the Russell 2000 saw the biggest drop at -0.70%. Only the Russell 2000 has seen losses over the past week, while the Dow Jones has gained +2% in the same time frame. Despite none of the indices reaching all-time highs, the Nasdaq and S&P are approaching those levels once again.
Nvidia made headlines with its 10-for-1 stock split that took place today, dropping the share price to around $121. This comes after the chipmaker and AI leader reported impressive earnings growth, with a +560% increase in earnings and +260% increase in revenue in Q1. This led to Nvidia becoming the second largest company in the world by market capitalization, trailing only behind Microsoft and surpassing Apple, which recently reached a $3 trillion market value. The stock has skyrocketed from under $200 per share in January 2023 to $1,210 per share currently.
With a Zacks Rank of #1 (Strong Buy) and significant earnings estimate upgrades, Nvidia’s stock split may attract even more buyers. The company is expected to see further growth in earnings and revenue in the current quarter. This success has put Nvidia at the forefront of the AI bull market, making it a lucrative investment option for many.
In the upcoming Nonfarm payrolls report, expected to be released tomorrow, the U.S. economy is anticipated to have added 190,000 jobs in May, an improvement from the previous month. The unemployment rate and year-on-year hourly wages are also expected to remain stable at +3.9%. This positive economic data could impact the market positively, as investors look for more good news in the midst of changing market conditions.
Nvidia’s success story and the anticipation of the economic report indicate a potentially positive outlook for investors in the coming days. With major companies like Nvidia driving market growth and economic indicators pointing towards stability, the market seems poised for further gains in the near future.
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https://finance.yahoo.com/news/nvidia-splits-10-1-non-221600600.html