Stock Market Weekly Summary

The stock market ended the week mixed on Friday, with the S&P 500 closing up 0.27%, the Nasdaq-100 closing up 3.05%, the Dow Jones Industrial Average closing down 0.68%, and the Russell 2000 Index closing down 0.50%.

The mixed performance of the major indices suggests that investors are still uncertain about the direction of the market. The rise in inflation is a major concern for investors, and it is likely to continue to weigh on the market in the coming months. The Fed is expected to continue to raise interest rates in an effort to combat inflation, and this could also have a negative impact on the stock market.

Here are some of the main news stories that affected the stock market this week:

• In an effort to prevent a U.S. default, Biden and McCarthy have collaboratively reached a debt agreement.
• The Fed’s key inflation gauge rose 4.7% for the year, above estimates and up from the 4.6% reading seen in March.
• Apple ink a multibillion-dollar deal with Broadcom to make 5G components in the United States.
• Ex-OpenAI execs raise $450M for Anthropic, a rival AI company building a competitor to ChatGPT named Claude.
• Netflix cracks down on password-sharing in the US.
• Fed officials not confident more rate hikes are needed in order to tame inflation, meeting minutes showed.
• Paramount+ to merge with Showtime on June 27 to create a larger content library.
• Ford to use Tesla’s supercharger network in a surprising partnership between two major EV automakers.
• NVIDIA reported strong earnings results for the first quarter of 2023. The company’s revenue and earnings per share both beat analyst expectations.
• German Economy Slides into Recession Amidst Reduced Consumer Spending

Overall, the market is likely to remain volatile in the coming months, and investors should be prepared for both gains and losses.

Here are some of my thoughts on the impact of the rise in inflation and the Fed’s continued interest rate hikes on the stock market:

• The rise in inflation is a major concern for investors, as it could lead to higher costs for businesses and consumers. This could lead to lower profits and slower economic growth, which could in turn lead to lower stock prices.
• The Fed’s continued interest rate hikes are also a concern for investors, as they could lead to higher borrowing costs for businesses and consumers. This could also lead to lower profits and slower economic growth, which could in turn lead to lower stock prices.

However, there are also some positive factors that could support the stock market in the coming months. The U.S. economy is still growing, and corporate earnings are still strong. Additionally, the stock market is relatively cheap compared to historical levels.

Overall, the market is likely to remain volatile in the coming months, and investors should be prepared for both gains and losses. However, there are some positive factors that could support the stock market in the long term.

NVIDIA (NVDA)

Nvidia’s recent strong earnings report lead to a rally in the Nasdaq. The company’s market cap was nearing the $1 trillion mark after it posted a positive forecast, and this news led to its shares opening 25% higher. This in turn boosted the Nasdaq Composite index, which was up 1.59% shortly after the market opened​​. This strong performance by Nvidia was indeed a positive sign for the semiconductor industry, which is a crucial component of the tech-heavy Nasdaq.

Last week, NVIDIA’s stock exhibited an impressive performance, surging by 25.96% to conclude at $389.46. This represents a significant year-to-date increase of 172.06%. Nvidia’s data center group reported strong sales in the first quarter of 2023, driven by demand for its GPU chips from cloud vendors and large consumer internet companies.

Cloud vendors are using Nvidia chips to power their data centers, which are used to store and process large amounts of data. Large consumer internet companies are using Nvidia chips to train and deploy generative AI applications, such as OpenAI’s ChatGPT.