Before the July Fed meeting, investors had a clear question: Would the Fed derail the recovery seen in the markets after recent declines, or would it fuel today’s bullish fire and feed the “greedy beast” of the market?
In the end, neither happened. Instead, the S&P 500 index rose by 1.58% following the interest rate decision and subsequent press conference by Jerome Powell. This was not much more than what it was rising before this key event that all markets were watching.
The Nasdaq 100, on the other hand, surged by more than 3%. The main driver of this strong rise was semiconductor stocks, which had taken a significant hit in the markets the previous day. Notably, Nvidia saw a robust recovery, climbing over 13% and rebounding from the previous day’s blow when it fell more than 7%. Also noteworthy were the gains by companies such as Advanced Micro Devices, Broadcom, and ASML.
Nvidia received a boost following statements from Microsoft in its earnings presentation, announcing its intention to further increase investments in artificial intelligence technology to meet growing demand. This significantly benefits Nvidia, as Microsoft represents 20% of its demand for AI chips. This sharp rise in Nvidia’s stock caused it to gain $329 billion in just one session, marking the largest single-day increase in the value of a single company in stock market history.
