US Stock Market Breaks Record: The Impact of Nvidia and Amazon

US Stock Market Hits Record High: Impact of Nvidia and Amazon

On Tuesday, U.S. stock indices rose to new record levels as investors assessed the latest earnings reports and hoped for confirmation of expected interest rate cuts from the Federal Reserve meeting. The Dow Jones Industrial Average (%^DJI) increased by 0.4%, while the technology-heavy Nasdaq Composite Index (%^IXIC) gained nearly 0.8%. The S&P 500 index (%^GSPC) rose 0.2%, achieving its third consecutive record closing. These gains came amid increasing hopes for a trade agreement between the U.S. and China.

Nvidia (NVDA) supported the markets by rising 5% ahead of its earnings report on Tuesday, reaching an all-time high. CEO Jensen Huang stated during the opening speech at the organization's GTC event that the artificial intelligence industry is experiencing a 'turning point' and announced new partnerships.

The mega tech companies known as the “Big Seven,” including Alphabet (GOOG), Apple (AAPL), Meta (META), Amazon (AMZN), and Microsoft (MSFT) are said to be facing a significant test with their quarterly earnings reports. In particular, the market is keenly awaiting results following Amazon's announcement of plans to lay off approximately 14,000 employees. Apple has also set a new record, surpassing a market value of $4 trillion.

As the earnings season continues, reports from major firms like Visa (V), UnitedHealth Group (UNH), UPS (UPS), and PayPal (PYPL) are in the spotlight.

Meanwhile, the Federal Reserve began a two-day policy meeting on Tuesday. Investors are eagerly awaiting the possibility of a second interest rate cut at the meeting scheduled for Wednesday. This anticipation comes at a time when Wall Street is facing a lack of data from the federal government sector.

On the trade front, President Donald Trump praised agreements made with Japanese Prime Minister Sanae Takaichi on Tuesday. Additionally, agreements on rare earths and trade have been signed. This sets the stage for an important meeting between Trump and Chinese President Xi Jinping on Thursday.