On Wednesday, June 5th Eastern Time, the US stock market closed higher, with the Nasdaq and S&P 500 index reaching historic highs. The release of ADP data, known as "small non farm payroll", confirms that the US labor market is cooling down, and the market is looking forward to Friday's non farm payroll data.
Nvidia's stock price rose by over 5%, with a market value exceeding $3 trillion, surpassing Apple to become the second largest company in the US stock market, second only to Microsoft.
China's assets have exploded, with most popular Chinese concept stocks rising. Zhonggai New Energy Vehicle stocks collectively rose, with NIO Automobile up 1.44%, Xiaopeng Automobile up 3.09%, and Ideal Automobile up 0.35%.
The Nasdaq and S&P 500 index hit historic highs
As of Wednesday's close, the Dow Jones Industrial Average rose 96.04 points, or 0.25%, to 38807.33 points; The Nasdaq rose 330.86 points, or 1.96%, to 17187.90 points; The S&P 500 index rose 62.69 points, or 1.18%, to 5354.03 points.
The release of "small non farm" ADP employment data further confirms that the US labor market is cooling down. Affected by a significant reduction in manufacturing payroll, the US ADP added 152000 people in May, the lowest level of the year and lower than the median forecast of 175000 people by economists.
Goldman Sachs reminds bears to be "cautious" as the US stock market's "summer party" is approaching. According to Sina, Scott Rubner, Managing Director of Goldman Sachs Global Markets, wrote in a report to clients on Wednesday, "In the new quarter (third quarter) and the new half year (second half), funds will rapidly flood into the stock market."
In addition, stock prices may benefit from strong seasonal trends and the participation of retail investors. He said, "I think retail investors will reappear in the summer, and they often come back in July. The threshold for short selling stocks is high now."
Nvidia's market value surpasses Apple and ranks second in the US stock market
On Wednesday, Nvidia rose 5.16%, reaching a new historical high with a total market value exceeding $3 trillion, surpassing Apple and becoming the second largest company in the world by market value, second only to Microsoft.
Nvidia has risen by over 147% this year and 200% last year.
Mizuho Securities has raised Nvidia's target price from $1180 to $1275, maintaining a "buy" rating, believing that the company's upcoming Blackwell GPU platform is expected to succeed, and that the upcoming stock spin off is also beneficial for the stock price.
Mizuho analyst Vijay Rakesh stated that Nvidia still has strong opportunities related to artificial intelligence, thanks to the Hopper platform and the upcoming Blackwell B100, which will be launched from the third quarter to the first quarter of this year.
In addition, Nvidia will conduct a 1:10 stock split plan on June 7th, and plans to increase its dividend per share from $0.04 to $0.10. Vijay Rakesh believes that this will create more demand from retail investors and boost stock prices.
Other chip stocks also performed very strongly, with Asma up 9.52%, TSMC up 6.85%, Broadcom up 6.18%, Micron Technology up 5.58%, Chaowei Semiconductor up 3.86%, Qualcomm up 3.68%, Intel up 2.5%, and Grid up 2.42%.
Technology stocks rise across the board
Technology stocks rose across the board, with Wanda's TAMAMA Technology Index up 2.15%, Apple up 0.78%, Amazon up 1.08%, Netflix up 2.95%, Google up 0.93%, Facebook up 3.79%, Microsoft up 1.91%, and Tesla up 0.13%.
According to Hong Kong's Wanda News Agency, at the 2024 Global Summit on Artificial Intelligence for Good, OpenAI CEO Sam Altman discussed in depth with the host the impact and future prospects of artificial intelligence through video conferencing. When discussing the globalization of artificial intelligence, Altman specifically pointed out that China will give birth to large models with its own characteristics, and it is expected that 10 to 20 large models will "survive".
Is the Texas Stock Exchange in preparation?
According to foreign media reports, a group supported by BlackRock and Castle Securities is seeking to establish a new national securities exchange in Texas, USA, and is touting itself as a "CEO friendly" solution outside of the New York Stock Exchange and Nasdaq.
According to comprehensive media reports, James Lee, Chairman and CEO of the Texas Stock Exchange (TXSE), the Dallas based company has raised $120 million with the support of over 20 investors.
He said on social media, "The thriving economy of Texas, along with strong economic and population growth in the southeastern states of the United States, has brought incredible opportunities to businesses and ultimately to the Texas Stock Exchange."
Popular Chinese concept stocks generally rise
Popular Chinese concept stocks generally rose, with the Nasdaq China Golden Dragon Index up 1.6%, Shengmei Semiconductor up 11.46%, Lujin Holdings up 9.61%, Daquan New Energy up 6.62%, NetEase up 6.17%, Wanguo Data up 5.9%, Legendary Biology up 5.56%, Tencent Music up 4.64%, Tiger Securities up 4.2%, and Autohome up 3.97%.
In terms of decline, Taihe Cheng Medical fell 47.14%, Dingdong Maicai fell 8.9%, Jike fell 7.28%, Shanda Technology fell 6.83%, and Lotus Technology fell 4.96%.
Zhonggai New Energy Vehicle stocks collectively rose, with NIO Automobile up 1.44%, Xiaopeng Automobile up 3.09%, and Ideal Automobile up 0.35%.