Wall St extends AI-led rally, Nvidia crosses $2 trillion in market value
By Amruta Khandekar and Bansari Mayur Kamdar
(Reuters) — Wall Street's main indexes extended gains on Friday and Nvidia (NASDAQ:NVDA) leapt above $2 trillion in market valuation for the first time on the AI frenzy that has gripped the market since the chip maker's blockbuster quarterly report.
The S&P 500 and Dow Jones Industrial Average surged to record closing highs on Thursday, while the tech-heavy Nasdaq was a whisker away from its all-time high, as investors piled into technology stocks after Nvidia's forecasts boosted confidence in the AI sector.
Nvidia added $277 billion in stock market value in the previous session, Wall Street's largest one-day gain in history as shares rallied.
Its shares were up 4.0% on Friday, while nine of the 11 major S&P 500 sectors advanced in early trading with technology stocks leading the gains.
«Investors are increasingly throwing caution to the wind and chasing this astonishing tech rally, confident that the artificial intelligence boom will shield corporate profits even if the economy turns,» said Marios Hadjikyriacos, senior investment analyst at XM.
At 09:43 a.m. ET, the Dow Jones Industrial Average was up 111.21 points, or 0.28%, at 39,180.32, the S&P 500 was up 19.91 points, or 0.39%, at 5,106.94, and the Nasdaq Composite was up 62.50 points, or 0.39%, at 16,104.12.
All the three major indexes were set for weekly gains after turbulence in the prior week when hotter-than-expected inflation data dampened expectations of early interest rate cuts from the U.S. Federal Reserve.
Traders firmed up bets against any U.S. interest-rate cuts before June after Fed Governor Christopher Waller on Thursday said he was in «no rush» to lower rates.
Among other stocks, Carvana surged 38.6% on
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