[Bitop Review] Nvidia Surges to Top Global Market Cap, Leading US Stocks to New Highs

All four major US stock indexes closed higher yesterday (June 18), with the S&P 500, Nasdaq, and Philadelphia Semiconductor Index (SOX) all reaching new highs. AI chip giant Nvidia surged past Microsoft to become the world’s most valuable company. While stock markets continued to set new highs, cryptocurrencies did not follow suit. At the time of writing, Bitcoin is down 0.23% in the past 24 hours, while Ethereum is up slightly by 1.14%.

Retail Sales Miss Expectations, Slightly Raising Expectations for Rate Cuts.

US retail sales rose 0.1% yesterday, well below economists’ forecast of 0.3%. New York Federal Reserve Bank President John Williams said interest rates will gradually decline over time, but he declined to say when the central bank will start easing monetary policy.

According to CME FedWatch data, investors’ expectations for rate cuts have increased slightly. Although the Fed’s dot plot released last week showed that there is a high probability of only one rate cut (0.25%) this year, investors generally believe that the Fed may restart the rate cut cycle in September and cut rates again by 0.25% in December.

Nvidia Pushes Past Microsoft to Top Global Market Cap

AI chip giant Nvidia’s stock price continued to rise after the company’s stock split last week, surging 3.51% yesterday to a market capitalization of $3.335 trillion, officially surpassing Microsoft to become the world’s most valuable company. Other chip stocks also continued their recent gains, pushing the SOX to a new high, closing up 1.35% to 5,765.12. The S&P 500 index set its 31st new closing record of the year, while the Nasdaq index set its seventh consecutive new closing record.

Funds Chase AI, BTC/ETH Range bound

While stock markets continued to set new highs, cryptocurrencies did not follow suit. In the absence of hype and capital inflows, Bitcoin is down 0.23% in the past 24 hours, while Ethereum is up slightly by 1.14%.

The stock market is now treating every AI news as a positive. Given the FOMO it has created, investors should be more careful with over peculation.

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