Breaking: Nvidia smashes records as tech industry soars on hopes of US economic rebound

Unveiling the Market Transformation

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A Record-Breaking Rally
- Nvidia, the US chipmaker, soared to a new all-time high, surpassing its previous peak in July. The resurgence in big technology stocks is fueled by growing confidence in a smooth landing for the US economy.
- With Nvidia’s shares closing at $138.07, its market capitalization boosted to $3.39 trillion, inching closer to Apple’s market leadership at $3.5 trillion.
Technology Stocks Regain Momentum
- After a period of turbulence and market uncertainty during the summer, many had anticipated a shift away from tech stocks towards other sectors like financial services and industrials.
- However, as the Federal Reserve started cutting US interest rates, large tech companies once again took the lead, driving the market to new highs.
Sector Resilience and Revival
- Following the Fed’s rate cuts, IT and communication services, previously lacking sectors in the S&P 500, experienced a remarkable recovery, with the IT sub-index soaring over 7%.
- Despite the recent market rally, some analysts highlight that the current environment differs significantly from past concerns of irrational exuberance and unsustainable gains.
Ongoing Market Dynamics
- While IT remains the top-performing sector post-rate cuts, over 60% of S&P 500 stocks have shown gains, including cyclical sectors like industrials and energy.
- Analysts are cautious about declaring a definitive return to tech dominance and view the current scenario as more of a catch-up phase.

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