Nvidia's AI Magic S&P 500 Soars!

S&P 500 Climbs Higher, Powered by Nvidia and Semiconductor Surge

The S&P 500 continued its upward trajectory on Tuesday, buoyed by significant gains from Nvidia and other prominent chip manufacturers. Investor optimism was further fueled by anticipation surrounding potential developments in U.S. trade relations.

Here’s a snapshot of how the major indices fared:

• S&P 500: Rose by 0.7%
• Dow Jones Industrial Average: Gained 220 points, a 0.5% increase
• Nasdaq Composite: Increased by 1%

Nvidia's stellar performance, along with that of its semiconductor peers, was a major catalyst for the day's market gains. The leading AI chipmaker saw its shares jump by more than 3%, building on Monday’s momentum. Notably, Nvidia's market capitalization briefly surpassed Microsoft's for the first time since January, underscoring its dominant position in the AI space.

Other key players in the chip sector also experienced notable increases:

• Broadcom: Increased by over 2%
• Micron Technology: Soared by more than 4%

According to Wedbush Securities analyst Dan Ives, "The Street is seeing past this game of high stakes poker and believe Trump and Xi on the schedule to speak this week is bullish for U.S.-China relations," adding that Nvidia is a key beneficiary of deal talks between the two countries.

However, CFRA Research's Sam Stovall offers a more cautious perspective, suggesting that the market might remain within a trading range of between 5,700 and its late February high for the foreseeable future.
"We're not going to get second quarter GDP data until July, we're not going to start to get second quarter earnings data until July, and we're also not going to be hearing more about tariffs until July," the chief investment strategist told CNBC. "The market is going to just sort of bob and weave in the meantime until we start to get a clearer understanding, if we get one, of the outlook for earnings, GDP growth, etc."

Economic Headwinds: OECD Growth Outlook Downgrade
Tuesday's market activity followed the Organization for Economic Co-operation and Development's (OECD) decision to lower its growth forecast for the U.S. economy. The OECD now projects U.S. economic expansion of just 1.6% in 2025, a significant reduction from its previous estimate of 2.2%. Tariffs and policy uncertainty were cited as primary factors contributing to this downward revision.

Trade Tensions Simmer
The global trade landscape remains complex. Recent statements from Beijing accuse the U.S. of violating the existing trade truce, a direct response to President Trump's claims that China has not upheld its commitments under the temporary agreement. Treasury Secretary Scott Bessent indicated on Sunday that a conversation between President Trump and President Xi Jinping is imminent to address these trade concerns.

Furthermore, the European Union has voiced strong criticism of President Trump's intention to double steel tariffs to 50%, asserting that such a move "undermines" ongoing negotiations with the U.S. An EU spokesperson stated that the bloc is "prepared to impose countermeasures" in response.

In conclusion, the S&P 500's rise, spearheaded by Nvidia and the broader chip sector, reflects investor optimism tempered by economic uncertainties and ongoing trade tensions. While the market continues to navigate these complexities, the performance of key technology companies and the evolution of international trade relationships will remain crucial factors to watch in the coming weeks.

Tags: NYSE, S&P 500, Dow Jones, Nasdaq, Nvidia, AI stocks, Stock market, US trade, Chip stocks, Broadcom, Semiconductor Stocks, Market Analysis

Source: https://www.cnbc.com/2025/06/02/stock-market-today-live-updates.html