Good evening, this is a breaking news report. Nvidia, a company that has seen eye-popping gains this year, has made history by becoming the largest public company in the world. The stock market has experienced repeated record highs, with the S&P 500 index jumping nearly 15% so far in 2024 and notching 31 new peaks along the way. However, the rally seems to be concentrated in the mega-cap Magnificent Seven stocks, driven by investors pouring cash into the artificial intelligence boom.
The S&P 500 equal-weighted index, which gives every stock the same weighting, has only risen 4% this year. The information technology and communication services sectors have seen gains of about 29% and 24%, respectively. Real estate, on the other hand, is lower for the year. Leading the market’s meteoric returns is Nvidia, whose shares are up an impressive 164% for the year.
Nvidia’s success is attributed to its production of processors powering artificial intelligence systems, including for generative AI like OpenAI’s ChatGPT. The company’s growth has sparked questions about the market’s reliance on Nvidia and whether its stock will continue to climb. In an interview with Christopher Barto, senior investment analyst at Fort Pitt Capital Group, he expressed confidence in Nvidia’s position and suggested opportunities for buying other companies in the market.
In other news, mortgage rates have dropped to their lowest level since early April, providing relief for America’s unaffordable housing market. The 30-year fixed-rate mortgage averaged 6.87% in the week ending June 20, down from the previous week’s 6.95% average and marking the third consecutive weekly decline. Analysts predict that borrowing costs will ease this year, but may not fall below 6%.
Additionally, OpenAI co-founder Ilya Sutskever has announced a new venture called Safe Superintelligence Inc., dedicated to building safe, powerful artificial intelligence. This development comes amid growing concerns about AI advancement and a lack of regulation in the tech industry. Sutskever, a pioneer in the AI revolution, is poised to lead this new endeavor in creating AI that prioritizes safety.
Stay tuned for more updates on these developing stories.
