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    • Rally led by Nvidia shares pushes S&P 500 toward best performance in 2024
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    Rally led by Nvidia shares pushes S&P 500 toward best performance in 2024

    Seren Anwen Posted on

    Top line

    The stock market recovery continued on Monday, with two of the major U.S. indexes posting their longest winning streak this year, with one familiar name leading the recent rebound.

    Key data

    By late afternoon, the S&P 500 index had gained 1%, marking the eighth consecutive day of comfortable gains, while the technology-heavy Nasdaq Composite also posted gains for the eighth consecutive day, rising 1.4%.

    This is the S&P’s longest winning streak since October 30 to November 8, 2023, and the Nasdaq’s longest since December 7 to December 19, 2023.

    The S&P hit its highest intraday price since July 18 and the Nasdaq hit its highest price since July 23.

    The rally was driven by a 4% rise in AI expert Nvidia, which hit its highest share price since July 15. There was also a 1% gain in B shares of Berkshire Hathaway, the conglomerate led by Warren Buffett, which hit its highest price ever on Monday.

    The 30-component Dow Jones Industrial Average hit its highest since Aug. 1 after rising 0.6 percent on Monday. The Dow is only on a five-day winning streak, however, largely due to the exclusion of Nvidia, whose 4 percent gain last Monday helped the Nasdaq and S&P to modest gains, while the Dow fell 0.4 percent.

    Surprising fact

    NVIDIA overtook Microsoft on Monday as the world’s second-largest company by market capitalization for the first time since June, according to YCharts data. Nvidia shares have risen nearly 30% in the past three weeks, adding about $700 billion to its market value.

    Important background

    Monday’s rally continued the recovery in stock prices from multi-month lows hit in early August: The Dow is up 6% since its Aug. 5 low, the S&P is up 8% and the Nasdaq is up more than 10%. The Dow and S&P are both within about 1% of their all-time highs from last month, while the Nasdaq is within 5% of its peak. The rebound comes after the plunge in the first week of August, which coincided with a weaker-than-expected U.S. jobs report and worries about potentially unusually aggressive monetary policy from the Bank of Japan.

    tangent

    The CBOE Volatility Index (VIX), considered Wall Street’s fear barometer, fell another 1 percent on Monday to its lowest level in four weeks and is now nearly 80 percent below its August 5 peak, indicating restored confidence in the market.

    More information

    ForbesIs a recession coming? Goldman Sachs lowers forecast as consumer health concerns are “greatly exaggerated”From Derek Saul

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    Seren Anwen
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