Stock market today: S&P 500 closes at record high as rate cut hopes rise and Nvidia surges

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  • US stocks jumped on Monday as traders took in an improved outlook for Fed rate cuts.
  • Major indexes gained, with the S&P 500 notching a record-high.
  • Investors see two rate cuts in 2024, per the CME FedWatch tool.

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US stocks climbed on Wednesday, with the S&P 500 and the Nasdaq Composite closing at fresh records as traders grew bullish on rate cuts and cheered Nvidia’s rally to claim the title of second most valuable company in the world.

Expectations for rate cuts have been bolstered by a cooling labor market, which gives the Federal Reserve room to losen monetary policy. According to ADP data, the private sector added 152,000 jobs in the last month, less than the 175,000 jobs economists anticipated.

“Investors are viewing slow economic data as ‘goldilocks,’ with growing hope for Fed rate cuts,” Mark Hackett, Nationwide’s chief of investment research said in a statement on Wednesday. “The slow and steady march higher for equity markets continues to confound the bears.”

Nvidia rose sharply on Thursday, leading the rally in the tech sector. The chipmaker ended the day at an all-time high, with shares rising 5% to close at $1,224.40.

The firm’s latest stock surge vaulted it past Apple as the world’s second most valuable company. It is now behind only Microsoft in market cap.

The next data point that investors will be focused on will arrive on Friday, when the Bureau of Labor Statistics releases the May nonfarm payroll report. Economists are expecting a reading of 1750,000 jobs added in May, about in line with April’s figure.

Here’s where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

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Here’s what else is going on today:

In commodities, bonds, and crypto:

  • West Texas Intermediate crude oil surged 1.3% to $74.20 a barrel. Brent crude, the international benchmark, rose 1.3% to $78.53 a barrel.
  • Gold climbed 1.17% to $2,355.29 per ounce.
  • The 10-year Treasury yield fell five basis points to 4.283%.
  • Bitcoin edged up 0.63% to $71,074.