S&P, NASDAQ Hike to New Record

The S&P 500 rose to a fresh record Wednesday as Nvidia led major tech stocks higher and slightly weak labour market data gave investors hope the Federal Reserve might move to lower interest rates later this year.

The Dow Jones Industrials regained 96.04 points to close the session at 38,807.33.

The much-broader index grabbed 62.69 points, or 1.2%, to 5,354.03, a fresh record.

The NASDAQ popped 330.86 points, or 2%, to 17,187.90, also a new record, as Nvidia provided the energy.

Nvidia continued its AI-driven run, adding more than 5% to hit a new record and reached a $3-trillion market value. The chipmaker unveiled new chips to start the week, which received more accolades from Wall Street analysts. Bank of America said Nvidia could rally to $1,500, reflecting upside of more than 22% from Wednesday’s close.

Along with Nvidia, other tech shares were leading Wednesday’s gains. Hewlett Packard Enterprise climbed more than 10% after fiscal second-quarter revenue topped Wall Street estimates. CrowdStrike jumped about 12% on stronger-than-expected earnings and guidance.
Fellow technology and artificial intelligence play Meta Platforms added 3.8%.

Private payroll data from ADP showed hiring slowed to 152,000 jobs last month, far below the 175,000 economists polled by Dow Jones expected. The data is the latest sign of weakness in the labor market that investors hope will give the Federal Reserve enough evidence to cut benchmark interest rates.

Traders also regarded data on activity in the services sector. Business services PMI rose more than expected to 53.8 compared to an estimate from Dow Jones that called for 50.7. Attention will turn to weekly jobless claims numbers on Thursday and Friday’s all-important May jobs report.

Job opening and labour turnover data from Tuesday morning showed 8.059 million vacancies in April, the lowest level in more than three years.

Prices for the 10-year Treasury slid, raising yields to 4.29% from Tuesday’s 4.33%. Treasury prices and yields move in opposite directions.

Oil prices recovered 91 cents to $74.16 U.S. a barrel.
Gold prices gained $26.80 to $2,374.30