Nvidia Surges as Nasdaq Hits New High

Tech stocks remained strong as most other stocks dropped
By Newser Editors and Wire Services
Posted May 28, 2024 3:42 PM CDT
Nvidia Surges as Nasdaq Hits New High
People pass the New York Stock Exchange on Tuesday, May 28, 2024.   (AP Photo/Peter Morgan, File)

Most US stocks fell Tuesday as a tick higher in bond yields tightened the screws a bit on Wall Street following a three-day weekend.

  • The S&P 500 rose 1.32 points, or less than 0.1%, to 5,306.04 and is sitting just below its record set a week ago. Roughly two out of every three stocks in the index fell.
  • The Dow Jones Industrial Average fell 216.73 points, or 0.6%, to 38,852.86
  • The Nasdaq composite rose 99.09 points, or 0.6%, to 17,019.88, a new all-time high.
Many stocks were feeling the effects of the modest rise in Treasury yields, which can help make everything from mortgages to credit cards more expensive and put downward pressure on the economy, the AP reports.

But some technology stocks remained particularly strong. Nvidia was leading the way and jumped 7.1% to bring its gain for the year so far to a whopping 129.7%. It's still riding a wave created by its latest blowout profit report from last week, which calmed some of the worries that Wall Street's frenzy around artificial-intelligence technology has inflated prices beyond reasonable levels. US Cellular climbed 12.2% after T-Mobile said it will buy nearly all of the company. The deal is valued at $4.4 billion and includes up to $2 billion in assumed debt. Shares of T-Mobile US added 0.8%.

GameStop jumped 25.2% after it said it raised $933.4 million in cash through a previously announced sale of stock. The company, whose stock price has often moved more on investors' enthusiasm than any change to its profit prospects, said it could use the cash for acquisitions, investments or other general corporate purposes. The rises weren't enough, though, to offset drops for health care stocks, which had some of Wall Street's sharpest losses. Moderna fell 8.1%, Merck dropped 2.6%, and Vertex Pharmaceuticals slipped 2.2%.

(More stock market stories.)

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