The New York stock market ended mixed on Wednesday after a volatile final hour of trading.
The overall market fluctuations were relatively modest.
AI chipmaker Nvidia surged over 4% without any specific catalyst, buoyed by anticipation for Micron Technology’s earnings report, which is due after the market close.
Nvidia swiftly broke through the $150 mark, setting a new all-time high after about six months and reclaiming its title as the world’s most valuable company from Microsoft (MS).
Meanwhile, Tesla shares continued to slide for the second consecutive day amid reports of sluggish sales in Europe for the fifth straight month.
Nasdaq Stands Alone in Positive Territory
Federal Reserve Chair Jerome Powell appeared before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday, dismissing speculation of a July rate cut. In response, investor sentiment shifted to a wait-and-see approach.
While a ceasefire between Israel and Iran eased Middle East tensions, underlying geopolitical risks also remained a factor for investors.
The Dow Jones Industrial Average fell 106.59 points (0.25%) to close at 42,982.43.
The S&P 500, which broadly reflects market conditions, fluctuated throughout the day before closing slightly lower. It ended down 0.02 points (0.00%) at 6,092.16, virtually unchanged from the previous session.
The tech-heavy Nasdaq was the sole gainer, rising 61.02 points (0.31%) to finish at 19,973.55, marking its third consecutive day of gains.
The CBOE Volatility Index (VIX), often referred to as Wall Street’s fear gauge, continued its downward trend, dropping 0.72 points (4.12%) to 16.76.
Nvidia Reaches New Heights
Nvidia shattered the $150 barrier for the first time in about six months, setting a new record high.
Its stock soared $6.41 (4.33%) to close at $154.31.
This is the first time Nvidia has closed above $150 per share.
Nvidia’s market capitalization reached $ 3.765 trillion, overtaking Microsoft’s $ 3.659 trillion to become the world’s most valuable company.
Microsoft shares rose $2.16 (0.44%) to close at $492.27.
The Wall Street Journal reported that Nvidia’s next growth driver is cloud computing. According to the report, there is growing speculation that Nvidia, which already dominates the AI chip market, could expand into cloud services, potentially challenging the dominance of Amazon, Microsoft, and Google.
Apple, which held the top market capitalization position until last year, closed up $1.26 (0.63%) at $201.56, barely maintaining a market value above $3 trillion.
Tesla Stumbles on Poor European Sales
After dropping 2.4% the previous day, Tesla’s stock extended its losses by falling another 3.8% on Wednesday.
Tesla shares plummeted $12.92 (3.79%) to close at $327.55.
Following an 8% surge on Monday due to the announcement of its robo-taxi service, Tesla has now lost 6% in two days.
The company faced headwinds due to weak sales in Europe.
The European Automobile Manufacturers Association (ACEA) reported that Tesla’s new car sales in Europe plunged 27.9% year-over-year in May, totaling just 13,863 units.
While new electric vehicle registrations in Europe surged by 27.2% compared to last year, Tesla experienced a significant decline in registrations.
This comes as Tesla’s core electric vehicle business is facing increasing pressure from Chinese competitors, particularly BYD. BYD, in contrast, recorded a staggering 397% year-over-year growth in May.
