Overnight, technology stocks in the US are celebrating! Nvidia surpassed Apple to become the second largest listed company in the United States after Microsoft; TSMC's stock price surged by 6%, setting a new historical high; For the first time, the total market value of Dutch lithography machine manufacturer Asma has surpassed the famous luxury goods group LVMH, becoming the second largest listed company in Europe by market value.
Behind the frenzy of the US stock market, "small non farm payroll" data has added fuel. Data shows that the US ADP added 152000 jobs in May, hitting a three-month low, far below Wall Street's expectations, adding further evidence to the Federal Reserve's interest rate cut.
The cooling labor market has boosted US stocks. On Wednesday local time, the Nasdaq and S&P 500 index hit historic highs. As of the close, the Dow Jones Industrial Average rose 0.25% to close at 38807.33 points; The S&P 500 index rose 62.69 points, or 1.18%, to 5354.03 points; The Nasdaq rose 330.86 points, or 1.96%, to 17187.90 points.
Nvidia's market value surpasses Apple's
Witness a historic moment in the US stock market. On Wednesday local time, US small non farm payroll data helped tech stocks soar. Among them, Nvidia surged 5%, with a total market value exceeding $3 trillion, surpassing Apple to become the second largest listed company in the United States after Microsoft.
As a leader in the AI industry, Nvidia's performance this year has been impressive. As of now, Nvidia's stock price has accumulated an increase of over 147% this year, far exceeding the growth of the Nasdaq index during the same period.
Nvidia's stock price surged this week due to positive factors such as product upgrades and outstanding performance. At last weekend's industry conference, Nvidia CEO Huang Renxun announced that the company plans to launch a high-performance version of Blackwell chips, Blackwell Ultra, in 2025, and a new AI chip platform, Rubin, in 2026. Rubin's Ultra version will debut in 2027.
In addition, the recently released first quarter financial report showed that Nvidia's adjusted earnings per share reached $6.12, with revenue reaching $26 billion, an increase of 461% and 262% respectively compared to the same period last year. Among them, the revenue of data center business increased by 427% year-on-year, reaching 22.6 billion US dollars, accounting for 86% of the company's total revenue.
TSMC's stock price, also located in the AI industry, has reached a historic high. As of the close on the 5th, TSMC rose 6.85% to close at $162.92 per share. On Tuesday, TSMC's new chairman, Wei Zhejia, hinted that he is considering increasing the price of the company's artificial intelligence chip foundry services. He also stated that he has discussed this issue with Nvidia CEO Huang Renxun.
At the same time, Dutch lithography machine manufacturer Asme surged 9%, with a total market value exceeding $410 billion, surpassing the famous luxury goods group LVMH for the first time and becoming the second largest listed company in Europe by market value. Regarding the reason for the sharp rise in stock prices, the company recently announced that it will deliver its latest high numerical aperture extreme ultraviolet lithography machine to its top customer, TSMC, this year.
In terms of other technology stocks, Meta rose more than 3%, Intel and Netflix rose more than 2%, Microsoft and Amazon rose more than 1%, and Apple, Tesla, and Google rose slightly.
The Nasdaq and S&P 500 index hit historic highs
Before Wednesday's US stock market session, the US "small non farm" data was released, far lower than Wall Street's expectations, adding "evidence" for the Federal Reserve's interest rate cut. Data shows that the US ADP added 152000 jobs in May, reaching a three-month low, and the report also shows a downward revision in April, further cooling the US labor market.
After the release of ADP data, the pricing of swap contracts showed that investors still expect the Federal Reserve to cut interest rates at least once this year, and the expectation of the Fed's first 25 basis points cut has been advanced from December to November. The Chicago Mercantile Exchange Federal Reserve observation tool shows that the likelihood of a 25 basis point rate cut in September is close to 70%.
The cooling trend of the labor market has ignited the US stock market. On Wednesday local time, the three major US stock indexes collectively closed higher, with the Nasdaq and S&P 500 index once again reaching historic highs. As of the close, the Dow Jones Industrial Average rose 96.04 points, or 0.25%, to 38807.33 points; The S&P 500 index rose 62.69 points, or 1.18%, to 5354.03 points; The Nasdaq rose 330.86 points, or 1.96%, to 17187.90 points.
Precious metals and WSB concept sectors rose, game stations rose by over 19%, AMC cinema lines rose by over 7%, and Harmony Gold and Hekla Mining rose by over 2%.
Most popular Chinese concept stocks rose, with NetEase up over 6%, Tencent Music up over 4%, Xiaopeng Motors up over 3%, Bilibili and Baidu up over 2%, JD.com, Alibaba, NIO, and Futu Holdings up over 1%, and Ideal Automobile up slightly. Vipshop, Pinduoduo, iQiyi, and Weibo fell more than 1%.
The Bank of Canada announces a 25 basis point rate cut
The first drop of G7 countries has arrived! Overnight, the Bank of Canada issued an interest rate resolution, announcing a 25 basis point reduction in the benchmark interest rate to 4.75%.
Bank of Canada Governor McLehm stated in a prepared speech that there is further and more sustained evidence that inflation is easing and monetary policy no longer needs to be so strict. Meanwhile, he also said that the timing of further interest rate cuts will depend on data, and the path of future rate cuts may be gradual, and the Bank of Canada does not need to act in sync with the Federal Reserve.
For global investors, Canada's interest rate cut is iconic. Canada became the first G7 country to cut interest rates in this global currency cycle. At present, the market generally expects that the European Central Bank will also start cutting interest rates tomorrow evening.
