Nvidia, now the most valuable company on Wall Street, is buoying indexes to record levels despite weaknesses in the economy
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Nvidia has become the most valuable company on Wall Street, surpassing Microsoft, with a total market value of over $3.3 trillion. The chip company's rise has helped keep U.S. indexes at record levels despite weaknesses in the economy. Nvidia's chips are powering the move into artificial intelligence (AI), which is expected to drive explosive growth in productivity and profits. The stock market's frenzy around AI technology has propelled Nvidia's stock up 181.5% this year. Despite some weakness in the U.S. economy, AI stocks like Nvidia have helped prop up the stock market. However, market watchers are concerned that the market is being carried by a handful of companies rather than a large number. The hope on Wall Street is for a slowdown in the U.S. economy's growth to keep inflationary pressures in check and potentially lead to a cut in the Federal Reserve's main interest rate. Nvidia's rise comes as other companies in various sectors, such as Winnebago Industries and Accenture, report weaker-than-expected profit and revenue. Treasury yields ticked higher following mixed reports on the economy, and some traders on Wall Street are expecting two or more interest rate cuts by the Federal Reserve this year. The stock market's performance has been strong despite weaknesses in the U.S. economy, particularly in housing and manufacturing.

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https://fortune.com/2024/06/20/nvidia-most-valuable-company-on-wall-street-buoying-indexes-to-record/