Tech stocks on the New York market soared yesterday, driven by solid performances from Nvidia and Tesla.
Nvidia, a leading player in AI semiconductors, saw its stock surge by 13%, fueling a notable increase in semiconductor shares. Meanwhile, Tesla, a top name in electric vehicles, jumped by 5%, leading the overall market rally. The gains were further amplified after Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut in September. This boost from tech giants propelled all three major indices higher from the opening bell.
Technology stocks surged once again, driving a significant market rally. The tech-heavy Nasdaq skyrocketed by 451.98 points, or 2.64%, reaching 17,599.40. The S&P 500, which has a substantial-tech component, also climbed by 85.86 points, or 1.58%, to settle at 5,522.30.
In contrast, the Dow Jones Industrial Average, which tracks 30 large-cap stocks, and the Russell 2000, representing 2,000 small-cap stocks, did not see as pronounced an increase. The Dow increased by 99.46 points, or 0.24%, closing at 40,842.79. The Russell 2000 gained 11.34 points, or 0.51%, finishing at 2,254.48.
The Chicago Board Options Exchange (CBOE) Volatility Index, often called the “fear index” of Wall Street, fell by 1.33 points, or 7.52%, ending the day at 16.36.
During the press conference following the Federal Open Market Committee (FOMC) meeting, Federal Reserve Chair Jerome Powell hinted that the long-awaited rate cut could be on the horizon. While he tempered his comments, Powell suggested a rate cut might be discussed in September.
Despite the Fed’s decision to keep the policy interest rate unchanged, with the federal funds rate target remaining at 5.25% to 5.50%, Powell’s remarks implied that a rate cut is approaching.
However, some experts caution that market expectations might be too optimistic. The Wells Fargo Investment Institute noted that high inflation could prevent the Fed from cutting rates as aggressively as anticipated. Contrary to the more hopeful projections in the market, they predict the Fed will only implement two rate cuts this year and one more next year.
On this day, Nvidia’s stock soared by 13%, driving a notable increase in semiconductor shares. Nvidia jumped by $13.39, or 12.90%, reaching $117.12. AMD, which competes with Nvidia in the AI semiconductor market, rose by $6.04, or 4.36%, to $144.48.
Micron Technology, recognized for its high-bandwidth memory (HBM) semiconductors, saw its stock climb by $7.26, or 7.08%, to $109.82. Arista Networks, which reported unexpectedly strong earnings, surged by $35.13, or 11.28%, closing at $346.55. Broadcom also experienced a boost, rising by $17.16, or 11.96%, to $160.68.
Tesla’s stock also rose over 4% after recovering from recent declines. The shares increased by $9.45, or 4.24%, reaching $232.07. Morgan Stanley’s positive outlook, which suggested that the mass production of Tesla’s semi-truck next year could significantly impact the commercial vehicle market, fueled this boost.
Meanwhile, international oil prices rebounded sharply after three days of losses. The recent killing of Ismail Haniyeh, a leading Hamas political figure, during his visit to Iran—following the death of Hezbollah commander Fuad Shukur—heightened concerns about escalating tensions in the Middle East.
In a nationally televised address, Israeli Prime Minister Benjamin Netanyahu stated that he had ordered strikes against adversaries in recent days and is prepared for any eventuality, indicating a readiness to escalate the conflict further.
Despite the previous day’s Israeli attack on a Hezbollah commander, international oil prices surged sharply. The global oil benchmark of Brent crude rose by $2.09, or 2.66%, to $80.72 per barrel. The more actively traded October delivery increased to $80.84.
West Texas Intermediate (WTI), the U.S. oil benchmark, experienced an even larger jump, climbing by $3.18, or 4.26%, to close at $77.91. This 4.26% rise in WTI marked the most significant single-day increase since October of the previous year.
However, despite the gains on this day, international oil prices declined in July. Brent crude fell by 7%, while WTI decreased by nearly 4%.
