The pop in Nvidia shares following its nearly perfect earnings report yesterday afternoon is pretty much the sole bright spot in the market today, but it’s enough to put the S&P 500 on track for another record close.
The information technology sector is the only silo of the S&P 500 in positive territory on the day, thanks to Nvidia and other semiconductor-related stocks. Broadcom, Micron and Qualcomm are all helping lift the markets. Chip design software firms Synopsis and Cadence Design Systems are also getting getting some love, as traders bet there’s going to be a lot of interest in designing chips over the coming years.
More broadly though, there’s something of a divergence in performance between Nvidia & Co. and stonks writ large. As of roughly 12:40pm, more than three stocks in the S&P 500 were down for every one that was up, even thought the overall market remains in the green.
It’s another reminder that its a few massive companies that hold sway in the market-cap weighted stock market index that really matter.
