Traders and investors were in for a treat on June 5, 2024, as the stock market saw significant gains with both the S&P 500 and Nasdaq Composite hitting new record highs. The tech-heavy Nasdaq led the charge, up by over 1%, while the S&P 500 followed closely behind with a gain of nearly 1%. These records were set amidst a rally in tech stocks, particularly Nvidia, which surged over 5% and crossed the $3 trillion market cap threshold for the first time. This marked a significant milestone as Nvidia surpassed Apple's market value to become the second most valuable US company.
The tech sector's strong performance was not limited to just Nvidia, as other major players like Microsoft also saw solid gains. The rally in tech stocks came amidst optimism for interest rate cuts and signs of a cooling economy, with labor demand showing tentative signs of slowing down.
Beyond the tech sector, other sectors also contributed to the overall market growth. For instance, ASML broke out on bullish news and chip-equipment giants like Applied Materials and Lam Research flashed buy signals. Dutch Bros stock shot up 7.7%, racing past a cup-base buy point of 36.17, while Wingstop gained 6.3% to rebound from the 50-day line and clear a short consolidation just above a prior flat base.
Constellation Energy bounced back with a gain of 3.05%, finding support at the 50-day line and ultimately clearing a short consolidation just above its prior flat base buy point of 198.83. Netflix also saw gains, climbing back up to reclaim its cup-base buy point of 639 after briefly dipping below it.
The strong performance in the stock market came as investors digested a range of economic data and earnings reports from various sectors. With earnings season largely behind us, the focus now turns back to macroeconomic data which may impact stocks near-term.
