Nvidia Retains Leadership In the AI-Driven Marker Rally

Barry Adams
20 Jun, 2024
New York City

Benchmark indexes on Wall Street inched further into record territory, and artificial intelligence-driven stocks raced higher. 

The S&P 500 index and the Nasdaq Composite inched up 0.3%, taking both indexes to record new highs as Nvidia continues to power ahead to new highs, forcing many analysts to review their price targets. 

Nvidia jumped 2.2% to $140.12 in early trading in New York. 

On the economic front, housing starts and permits declined in May, and initial jobless claims rose in the previous week, according to two different government reports. 

Initial jobless claims decreased from 5,000 to 238,000 for the week ended June 15, and continuing claims increased by 15,000 to 1,828 million, the U.S. Labor Department reported in its weekly update on Thursday. 

The job market continues to moderate but remains in tight conditions, despite eleven rate hikes over 2022 and 2023, as employers struggle to fill positions in the service industry. 

 

Housing Starts and Permits Plunged in May

Housing starts decreased 5.5% in May from the previous month to 1.277 million, building permits fell 3.8% to 1.386 million, and completions fell 8.4% to 1.65 million, according to the latest data released by the U.S. Census Bureau. 

From a year ago, housing starts declined 19.3%, permits fell 9.5%, and completions rose 1.0%. 

The annualized housing start rate dropped to the lowest since July 2020. 

The unexpected decline in starts showed that elevated interest rates are weighing on the housing market. 

Single-family starts declined 5.2% from the previous month to 982,000, and multi-unit starts declined 10.2% to 278,000. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 5,505.13, and the Nasdaq Composite rose 0.3% to 17,923.03. 

The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.24%, and 30-year Treasury bonds edged higher to 4.40%.

WTI crude oil increased $0.27 to $80.94 a barrel, and natural gas prices fell 5 cents to $2.85 a thermal unit.

Gold increased by $12.70 to $2,341.70 an ounce, and silver rose 12 cents to $30.24. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.44.

 

U.S. Stock Movers

Darden Restaurants gained 1.4% to $154.04, and the parent company of Olive Garden reported revenue of $2.96 billion and adjusted earnings per share of $2.65, slightly ahead of market expectations. 

Total sales increased 6.8%, driven by sales from the addition of 80 company-owned Ruth's Chris Steak House restaurants and 37 other net new restaurants in the quarter.

During the quarter, the company repurchased approximately 600,000 shares of its common stock for a total of approximately $97.3 million. 

As of the end of the fiscal fourth quarter, the company had approximately $915 million remaining under the current $1 billion repurchase authorization.

However, consolidated same-store sales declined for the second quarter in a row, and fine dining sales fell 2.6%. 

Accenture soared 7.2% to $305.86, and the company reported weaker-than-expected quarterly results but added that it won $900 million in new generative artificial intelligence-related contracts. 

Trump Media & Technology declined 11.6% to $27.67, and the company said its registration of additional shares was declared effective by the Securities and Exchange Commission, allowing the company to sell shares and warrants and raise as much as $247 million.