The Nasdaq crossed 17,000 for the first time ever on Tuesday, boosted by gains in Nvidia, while the S&P 500 closed barely higher and the Dow ended lower as Treasury yields rose.
Nvidia jumped 7% and boosted shares of other chip stocks as traders returned from a holiday-extended weekend. An index of semiconductors rose 1.9%.
Market Snapshot
The Dow Jones Industrial Average fell 216.73 points, or 0.55%, to 38,852.86, the S&P 500 gained 1.32 points, or 0.02%, to 5,306.04 and the Nasdaq Composite gained 99.09 points, or 0.59%, to 17,019.88.
Market Movers
GameStop jumped 25% after the videogame retailer on Friday said it completed an equity offering of 45 million shares for proceeds of about $933.4 million. GameStop said proceeds would be used for general corporate purposes, “which may include acquisitions and investments.” The at-the-market offering was disclosed in a filing May 17.
Nvidia was up 7%. Shares of the chip maker were getting a boost from an announcement by Elon Musk that his xAI start-up raised $6 billion in its latest round of fund-raising. It’s expected that much of the newly raised cash should be spent on Nvidia’s hardware.
Apple initially rose after Bloomberg, citing figures from the China Academy of Information and Communications Technology, reported that iPhone shipments in China rose 52% from a year earlier. But the stock ended the day flat.
DraftKings fell 10% after Illinois senators passed a new budget that includes a tax increase on sports-betting operators. The legislation would make Illinois the second-most expensive state for wagering operators to do business in, according to iGamingBusiness.com. Flutter Entertainment, the parent company of FanDuel, declined 7.7%.
Insmed surged 119% after the biopharmaceutical company reported positive top-line results from a Phase 3 study of its treatment for non-cystic fibrosis bronchiectasis. Insmed said it planned to file a new drug application with the Food and Drug Administration for brensocatib in patients with bronchiectasis in the fourth quarter.
U.S. Cellular jumped 12% after T-Mobile agreed to acquire most of U.S. Cellular’s operations in a deal for roughly $4.4 billion. T-Mobile said it was buying “substantially all” of U.S. Cellular’s wireless operations and certain spectrum assets. The purchase price includes about $2 billion of assumed debt. The parent company of U.S. Cellular, Telephone & Data Systems, was up 1.7%. T-Mobile rose 0.8%.
Duolingo jumped 8.8% to $194.16 after analysts at JMP Securities upgraded shares of the language-learning app company to Outperform from Market Perform with a price target of $260.
Norwegian Cruise Line Holdings was upgraded by Mizuho Securities to Buy from Neutral and the price target was raised to $24 from $21. The stock was up 3.5% to $16.56.
Nvidia’s Market Cap Hasn’t Been This Close to Apple’s Since 2009
Nvidia shares are on a major hot streak, while Apple’s stock has been in a rut this year. Now, the market-cap gap between the two companies is the tightest it’s been since 2009, as the chip maker looks to be the third-ever U.S. company to finish a trading day with a $3 trillion valuation.
As of the end of Tuesday’s session, Nvidia had a $2.848 trillion valuation, while Apple had a $2.913 trillion valuation. That meant the margin between the two was $65.80 billion — the narrowest it’s been since Jan. 20, 2009, according to Dow Jones Market Data.
The gap is nearly the size of Apple’s entire market cap at that January 2009 point: Back then, Apple’s market value was $69.56 billion, while Nvidia’s was $3.87 billion.
Cathie Wood’s $60 Million Venture Fund Nabs Stake in Elon Musk’s xAI
Cathie Wood’s Ark Investment Management has purchased a stake in Elon Musk’s artificial-intelligence startup xAI, part of a growing wager that the nascent AI industry will revolutionize global tech.
Wood’s Ark Venture Fund revealed the stake in an email to clients Tuesday. It represents about 2% of the fund’s holdings, Ark Chief Futurist Brett Winton said in an interview. The purchase comes a month after the fund disclosed a position in OpenAI that made up roughly 4% of its holdings. The closed-end interval fund also has a stake in AI firm Anthropic, accounting for about 5% of assets.
Robinhood Jumps on Plan to Buy Back Up to $1 Billion of Shares
Robinhood Markets Inc. jumped after the retail brokerage announced a plan to repurchase as much as $1 billion of its own shares.
The firm expects the buyback program to kick off in the third quarter and take place over a two to three year period, it said Tuesday in a filing. Shares in Robinhood jumped as much as 7.4% in late New York trading after the company said its board approved the repurchase plan.
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