Nvidia's stock performance has had a significant impact on the tech sector, particularly due to its association with artificial intelligence (AI). As the demand for AI-powered applications grows, Nvidia's GPUs have become essential for accelerating AI workloads. This has led to a surge in the company's stock price, making it the third most valuable company in the S&P 500 and propelling the tech sector to new heights.
The Swiss National Bank cut its main interest rate by 0.25% due to a drop in "underlying inflationary pressure" despite an uptick in some costs like rents, tourism services, and oil products6. The central bank aims to ease inflationary pressures by making borrowing more expensive to cool economic activity and rein in upward pressure on prices.
The S&P 500 was driven to its 31st record close this year primarily by the excitement around AI's potential, with Nvidia being a major contributor2. The tech-heavy Nasdaq Composite also touched new highs, and energy-related stocks led gains, with the S&P 500 Energy Select ETF rising over 1%.