U.S. stocks end higher as Nvidia surpasses Apple

NEW YORK (Xinhua), June 5 – U.S. stock prices ended higher on Thursday, primarily due to gains in technology stocks.

The Dow Jones Industrial Average increased 96.04 or 0.25 percent to 38,807.33. S&P 500 gained 62.69, or 1.18 per cent, to 5,354.03. The Nasdaq Composite index increased by 330.86 or 1.96 percent to 17,187.9. The S&P 500 index and the Nasdaq composite index both closed at new highs.

Seven out of 11 S&P 500 primary sectors finished in green. Technology and communication services led the gainers, going up by 2.68 percent each and respectively. Utility stocks and consumer staples were the biggest losers, with a drop of 0.58 percent each.

The Institute for Supply Management announced on Wednesday that the service sector purchasing managers’ index (PMI), which was 49.4 percent last April, rose to 53.8% in May. According to a Wall Street Journal survey, this was higher than economists expected. They had predicted a rise of 50.7 percent. A number above 50% indicates an expansion of the economy. For the first time in December 2022, the ISM index fell into contraction territory. Anthony Nieves is the chair of the ISM Services Survey Committee. He stated that the second part of the year will be slightly better than first.

According to ADP data, the private sector added 152,000 new jobs in the United States during the month of December, which is less than the 175,000 expected by economists. This suggests that the U.S. labour market continues to cool, and gives investors hope that the Fed will cut interest rates this year. The report led to a further decline in U.S. Treasury rates. As of 4:15 pm EDT, the yield on the benchmark 10 year Treasury note is 4.283 percent and that for 30-year Treasury notes is 4.433.

“We are seeing economic data start to ease a bit, and that’s causing the pressure on interest rates to come off a bit, mixed with the possibility of weaker economic data. This is a good recipe for bond markets,” said Jack Janasiewicz. He is a portfolio manager for Natixis Investment Managers Solutions, in Boston.

Nvidia shares rose by more than 5 per cent on Wednesday. The market capitalization of the AI chip maker now exceeds 3 trillion dollars. Apple is no longer the second-most valuable company in the world. Nvidia passed the $1 trillion dollar mark in August and surpassed $2 trillion dollars in Febuary. The company will split its stock 10 for 1 starting June 7.

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