S&P, Dow eke out another record closing high as Nvidia momentum endures
Dow Jones Industrial Average eked out another closing record high on Friday, with all three Wall Street benchmarks scoring weekly gains, as artificial intelligence stocks had enough steam to keep the rally chugging along.
AI poster child Nvidia advanced again, rising 0.4%, and briefly traded above $2 trillion in market valuation for the first time.
Nvidia's gains on Thursday, the session after its blowout earnings, had propelled the chipmaker to add $277 billion in stock market value, Wall Street's largest ever daily gain. Despite a smaller advance on the final trading day of the week, its performance still dominated the market's attention.
«Nvidia is one of the key companies, if not the key company, for driving the Nasdaq and S&P 500 higher,» said Anthony Saglimbene, chief market strategist at Ameriprise.
Saglimbene noted investors have been walking back expectations for Federal Reserve interest rate cuts, which otherwise could be a headwind for markets. But the performance of Nvidia and other Big Tech has pushed Fed worries into the background.
«The concentration is so intense right now on Big Tech, in particular on Nvidia, that it's looking passed that,» he said.
Nvidia had pulled up other Big Tech and growth stocks in previous sessions, as investors traded the AI play. Some of these names gave up some gains on Friday, as Apple, Tesla and Meta Platforms all fell between 0.4% and 2.8%.
Shares of Super Micro Computer, another beneficiary of the AI rally, dropped 11.8% after the server component maker priced
