Three prominent US companies have recently surpassed the remarkable milestone of a $2 trillion market value each. This achievement underscores their significant influence and position within the global economy.
Nvidia, a leader in AI chip technology, experienced a notable surge in its shares, rising more than 4% on Friday, allowing it to breach the $2 trillion mark. However, this places Nvidia in the shadows of Microsoft, which holds the top position with a staggering market value of $3.09 trillion. Following closely behind is Apple, boasting a market capitalization of $2.77 trillion.
While Nvidia and Microsoft celebrated gains, Apple faced a decline in its shares by 0.6%. This downturn was attributed to reports suggesting the discontinuation of its electric vehicle project after over a decade of development efforts, resulting in a 1.44% decrease in its share value.
In the backdrop of these developments, investors are displaying a renewed interest in traditional stock sectors, such as industrials and materials, evidenced by recent sector rallies. Despite this, the dominance of artificial intelligence (AI) technologies continues to exert a significant influence on market trends.
This sentiment was particularly evident in the tech-heavy Nasdaq index, which reached an all-time high on Friday, surpassing its previous record set in 2021. Investor confidence in megacap technology stocks remains strong, fueled by expectations of sustained growth amidst a backdrop of slowing inflation and the burgeoning AI industry.
Looking ahead, the Australian market is anticipated to commence cautiously on Monday, with the ASX 200 futures market indicating a modest 10-point increase following Wall Street's record-breaking end to the week. The ASX 200 index closed higher on Friday, marking a 1.33% gain for the week, signaling cautious optimism among investors amidst ongoing market fluctuations.
