Key points:

  • The S&P 500 and Nasdaq indices reached record highs at the close of trading.
  • Investors are waiting for the publication of economic data and speeches by Fed representatives.
  • Philadelphia Fed President Harker admits a rate cut this year.

The S&P 500 and Nasdaq indices showed strong growth, reaching record values ​​at the close of trading. The rise came amid optimism about the technology sector, fueled by expectations surrounding the development of artificial intelligence.

Investors are eagerly awaiting the release of economic data this week, as well as speeches from Federal Reserve officials that could provide clarity on monetary policy plans.

As a result, the Dow Jones index rose by 188.94 points (0.49%), reaching 38,778.10 points. The S&P 500 added 41.63 points (0.77%) to close at 5,473.23. The Nasdaq Composite rose 168.14 points (0.95%), ending the day at 17,857.02.

The technology sector is in the green

The most noticeable growth was demonstrated by shares of giant technology companies. Apple shares rose by 1.97%, Microsoft shares by 1.31%, recouping their morning decline. Apple shares continued to rise after the company announced new artificial intelligence features aimed at stimulating demand for the iPhone.

Shares of Broadcom and Taiwan Semiconductor Manufacturing also rose 5.41% and 2.74%, respectively. Micron Technology shares gained 4.58% after analysts raised their price targets.

Philadelphia Fed President Patrick Harker said Monday the Federal Reserve could cut its benchmark interest rate once this year if its economic forecast pans out.

Investors are awaiting the release of a range of economic data this week, including May retail sales (Tuesday), industrial production and housing construction data. Despite market expectations, the Fed did not cut interest rates this week, postponing this decision, possibly until December.

Please note that the markets will be closed on Wednesday, June 19, due to the holiday.

The US Supreme Court will consider Nvidia’s proposal to dismiss the shareholder lawsuit

Meanwhile, shares of artificial intelligence chip leader Nvidia retreated slightly from their all-time high and lost 0.66%. In addition, the US Supreme Court accepted Nvidia‘s appeal to overturn its securities fraud claim. The plaintiffs in the lawsuit allege that Nvidia misled investors about the share of sales that came from the volatile cryptocurrency industry.

In 2018, Nvidia chips became in demand for cryptocurrency mining, the process of performing complex mathematical calculations to ensure the security of cryptocurrencies such as Bitcoin. However, according to the lawsuit filed in 2018, Nvidia and its management made statements in 2017 and 2018 that falsely downplayed the impact of cryptocurrency mining on the company’s revenue growth.

The plaintiffs claim that these omissions misled investors and analysts who were seeking to understand the impact of cryptocurrency mining on Nvidia’s business.