Despite a positive streak that lasted for five weeks, the U.S. stock market recently ended its run. Investors expressed concerns about slowing economic momentum and its impact on the earnings outlook for American corporations. Although the first quarter’s growth rate was revised downward to 1.3%, the Fed’s steady inflation measure in April provided some relief regarding price pressures. However, slowing spending and income growth, as well as a significant drop in the Chicago business activity gauge, raised worries about a potential economic slowdown.
During the week, the tech sector underperformed while utilities saw better performance as investors shifted their focus to defensive sectors. Trump Media & Technology Group’s stock dropped after former President Donald Trump faced 34 charges related to falsified business records. Despite some investor support, worries about the company’s financial performance and declining user engagement on Truth Social affected investor sentiment.
Nvidia’s market capitalization soared to $2.805 trillion, surpassing the combined value of several major companies, including Tesla, Exxon, Walmart, and Disney. The company’s stock reached new all-time highs due to increased investor confidence, driven in part by advancements in AI technology and potential use in Elon Musk’s supercomputing projects. Additionally, U.S. home prices hit record highs in March 2024, with a 7.4% year-on-year growth rate.
Nvidia experienced an impressive 186% surge in its stock over the last year due to demand for AI chips
