S&P 500 futures saw a rise on Thursday morning as investors sought to push the index to a new record high. Futures for the market index increased by 0.2%, while Nasdaq 100 futures surged by 0.64%. On the other hand, Dow Jones Industrial Average futures dropped by 0.04%. This positive momentum comes as the stock market closes in on a winning week following the recent record-breaking performances of both the S&P 500 and Nasdaq Composite. The market was closed on Wednesday for the holiday.
NVIDIA emerged as a top performer, solidifying its position as a leader in artificial intelligence and chip manufacturing. The company overtook Microsoft to become the most valuable company in the world. NVIDIA’s stock has soared by 174% in 2024, riding the wave of the AI boom that continues to drive its stock value higher. This growth has outpaced major competitors like Broadcom, which has seen a 61% increase in 2024.
While the rise of AI companies like NVIDIA has been impressive, some experts have expressed concerns about the lack of market breadth, particularly outside of the largest technology firms. Despite these concerns, stocks have continued to break records, fueled by investor optimism in the AI sector. Scott Chronert, Citi’s head of US equity strategy, highlighted the growing influence of AI on the US equity market, despite potential signs of economic weakness.
As the market reaches new heights, some analysts have drawn parallels to the dot-com bubble of the early 2000s. Thomas Fitzpatrick, managing director at RJ O’Brien and Associates, warned of a potential day of reckoning but acknowledged the challenges of going against the current trend in the market. Investors are closely monitoring economic data releases, such as initial jobless claims numbers and home construction data, for further insights into the state of the economy.
Overall, the stock market remains bullish as investors continue to place their bets on AI companies like NVIDIA, driving the market towards new records. The influence of AI on the market is undeniable, with major tech companies leading the way in an environment that may present similarities to past market bubbles. Despite concerns about market breadth and potential challenges ahead, the momentum of the stock market shows no signs of slowing down.
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https://www.cnbc.com/2024/06/19/sp-500-futures-were-little-changed-as-wall-street-looks-for-nvidia-to-keep-leading-market.html