Nvidia Becomes World's Most Valuable Public Company… Trump Stock Tanks 10% On Hard Deadline

Tuesday was a sparkling day for the stock market as both the S&P 500 and Nasdaq strutted to fresh record highs. 

The S&P 500 closed up 0.3%, marking its 31st record finish of the year with the swagger of a seasoned pro, while the Nasdaq flaunted its tech-savvy prowess with a 7th consecutive record close. Even the Dow Jones got in on the action with a modest 0.2% gain.

Let’s see what else slipped past your radar.

Today’s issue covers: Nvidia becoming the world’s most valuable company…

Trump Stock tanking 10% off of looming deadline…

And of course, our top gainers of the day.

Here’s the heatmap.

In the tech sector, enthusiasm around artificial intelligence (AI) continues to drive investor interest. This buzz has prompted Wall Street banks to raise their year-end targets for the S&P, with experts suggesting we're still in the early stages of this technological revolution.

However, not all news was rosy. May's retail sales figures disappointed, showing only a marginal 0.1% increase and revising April's numbers downwards. This tepid consumer spending comes amid concerns over high interest rates and persistent inflation pressures.

Federal Reserve officials weighed in on the economic outlook, with Fed governor Ariana Kugler expressing cautious optimism. She highlighted potential improvements in supply chains and cooling demand as factors that could ease inflationary pressures. Kugler hinted that if economic conditions remain favorable, there could be room to adjust monetary policy later this year. Despite this, market expectations for significant rate cuts persist, underscoring lingering uncertainties.

In essence, while Nvidia's milestone as the most valuable company grabs headlines, the broader market's momentum hinges on tech-driven optimism. Investors are balancing their bets between established giants and emerging opportunities, navigating a landscape shaped by both promise and caution.

Nvidia Climbs to the Top: Becomes World's Most Valuable Public Company

Nvidia just pulled a major power move on Tuesday, leapfrogging Microsoft to become the world’s most valuable public company. It's like the tech world’s version of “king of the hill,” and Nvidia's at the top right now.

The stock jumped nearly $5, or 3.7%, landing at $135.77 per share. This price surge catapulted Nvidia's market value to a whopping $3.33 trillion. For comparison, Microsoft sits at $3.31 trillion and Apple at $3.29 trillion. Remember, just a year ago, Nvidia was celebrating breaking the $1 trillion mark. Talk about a glow-up!

Earlier this month, Nvidia's stock was trading at over $1,200 until they did a 10-for-1 stock split on June 7 to make shares more affordable. Now everyone can get a piece of the action without selling a kidney.

Nvidia’s meteoric rise isn’t just for show. The company’s chips are in hot demand, fueling massive corporate spending on AI and boosting its data center business. This isn’t some flash-in-the-pan success; Nvidia’s revenue has more than doubled, pulling in over $22 billion in a single quarter compared to $11 billion annually just a few years ago. Their leather-jacket-wearing CEO, Jensen Huang, is hailed as a tech visionary, driving the next wave of innovation with AI tools like ChatGPT.

Beyond AI, Nvidia is also a heavyweight in graphics processing hardware, cloud services, and high-performance computing. They’re even making moves into robotics and autonomous driving. Basically, if it’s cutting-edge tech, Nvidia's got a hand in it.

This triumph for Nvidia also gave the S&P 500 a boost, hitting new records as investors flock to companies poised to thrive in the AI boom. “We’ve been waiting for this moment for a while,” said Angelo Zino of CFRA. The semiconductor industry is now the biggest player in the S&P 500, and Nvidia is leading the charge.

In summary, Nvidia's rise to the top isn't just a headline—it's a sign of the times in tech and a signal for where the industry is heading.

Stock.News Spikers of the Day

Vapotherm, Inc.: [VAPO] [+160.98%]

Comtech Telecommunications Corp.: [CMTL] [+87.56%]

Trump Media Shares Tank 10% Amidst Continued Sell-Off

In true President Biden fashion, Trump Media & Technology Group took a bit of a tumble on Tuesday, with its shares sliding nearly 10%.

The stock closed at $31.31, and boy, was it a busy day on Wall Street with over 7.5 million shares trading hands. 

Since May 30, when Donald Trump got hit with those felony charges, Trump Media’s shares have been on a downward slide, down about 40%. Just when you think it can get worse, it somehow does. 

To add fuel to the fire, there was a June 18 deadline looming, tempting some investors to cash in their warrants.

In a classic case of "bad news travels fast," after the SEC gave the green light for those warrants to be cashed, the stock took another hit, dropping over 15% in after-hours trading. Ouch.

And let’s not forget the fine print. Trump Media’s warning to investors about Trump possibly playing the field with other social media platforms didn’t help matters. It’s like telling your best friend not to date your ex, but they end up swiping right anyway.

Truth Social, Trump’s pet project, hasn’t exactly been a social media sensation either. Its traffic dropped by nearly 40% compared to last year. Seems like even with a famous name behind it, Truth Social is struggling to get the likes.

In summary, Trump Media’s stock woes are a cautionary tale in the market. When legal troubles mix with financial reports and social media drama, it’s enough to make anyone’s stock portfolio feel a little queasy.

Stocks.News has positions in Apple and Microsoft.