Nvidia's surge boosts Nasdaq to a record, while Dow slips amid broader market struggles
The Nasdaq Composite has closed at a record level on Tuesday, as Nvidia's rise lifted the technology-heavy index during a generally uneventful trading day, according to CNBC.
The Nasdaq gained 0.59 percent to reach 17,019.88, surpassing the 17,000 level for the first time, with Nvidia's shares increasing by more than 7 percent.
The S&P 500 edged up by 0.02 percent to 5,306.04, while the Dow Jones Industrial Average dropped 0.55 percent, or 216.73 points, to finish at 38,852.86.
Nvidia’s surge helped conceal broader market difficulties. The Dow was dragged down by declines in Merck and other healthcare stocks. Over 350 stocks in the S&P 500 saw losses, and the healthcare, industrial, and financial sectors each dropped by more than 1 percent.
A weak government auction of Treasurys pushed the rate on the 10-year note back above 4.5 percent. Stocks have struggled when this benchmark rate exceeds that level. As yields rose, stocks fell to their session lows, with the Dow dropping more than 300 points before rebounding.
Minneapolis Federal Reserve President Neel Kashkari said he needs to see “many more months” of data showing easing inflation before considering rate cuts. He did not rule out further rate hikes if inflation increases again.
Tuesday's movements come towards the end of a strong month, with all three major indexes hitting new record levels in May. Earlier in the month, softer inflation data and better-than-expected quarterly earnings reports boosted sentiment, suggesting interest rate cuts might occur sooner than expected.
The Dow has risen by 2.7 percent in May, while the S&P 500 and Nasdaq have increased by more than 5 percent and 8 percent, respectively.
“We could see a little bit of choppiness this week,” said Larry Tentarelli, founder of the Blue Chip Daily Trend Report, “but overall, I think the market is bullish.”
Looking ahead, investors are awaiting the personal income and expenditures report, which includes the PCE (Private Consumer Expenditure) inflation reading for April, set to be released on Friday.
