Even in the final throes of debt negotiations… ‘Nvidia bullish’ Nasdaq rises

[뉴욕=이데일리 김정남 특파원] The New York stock market is under strong pressure as Nvidia’s share price goes high. However, there is a mixed flow with the news that the debt ceiling may go through last-minute pain.

According to Market Point on the 30th (local time), as of 11:07 am on the same day, the Dow Jones 30 Industrial Average Index, which collects blue chips on the New York Stock Exchange, is down 0.40% from the previous trading day. On the other hand, the Standard & Poor’s (S&P) 500 index, which focuses on large caps, rose 0.18%. The Nasdaq index, which focuses on technology stocks, is up 0.73%.

(Photo = Courtesy of AFP)

The reason why the three major indices are somewhat mixed in the early market is because good news and bad news are pouring in at the same time. The biggest favor is Nvidia. Nvidia is strong every day thanks to the artificial intelligence (AI) boom, and thanks to this, the Nasdaq index is rising. Nvidia stock is currently up 5.79%. Nvidia stock has soared nearly 190% this year alone.

Nvidia is a manufacturer specializing in graphics processing units (GPUs). In-house development of a large language model (LLM) for generative AI such as ChatGPT requires an auxiliary chip such as a GPU to help the central processing unit (CPU), and Nvidia’s chip is optimized. This is why Nvidia’s GPU is called the so-called ‘AI chip’. Accordingly, big techs such as Google, Amazon, Microsoft, and Oracle, which are expanding AI cloud services, are buying a large number of Nvidia chips to increase data center performance.

Nvidia’s market cap is also increasing. Its current market cap is $1 trillion, making it the first semiconductor company to join the $1 trillion club. It ranks 6th worldwide after Apple, Microsoft, Saudi Aramco, Alphabet (parent company of Google), and Amazon.

Tesla shares are currently rising 4.15% on the news that CEO Elon Musk visited China for the first time in three years. China is Tesla’s second largest market after the United States. At the same time, the Shanghai plant is Tesla’s largest production base.

However, the fact that the process of raising the debt ceiling is not easy until the last minute is a variable. President Joe Biden and Republican House Speaker Kevin McCarthy tentatively agreed to raise the limit over the weekend, but this is because difficulties are inevitable in the passage of the bill.

The House Steering Committee will start discussing the bill this afternoon ahead of a vote at the full House meeting on the 31st. The steering committee is made up of nine Republicans and four Democrats. The problem is that two out of nine Republican members are already openly opposed to the deal. Some hardline Republicans are blaming McCarthy for giving in to the White House, CNBC reported.

Florida Governor Ron DeSantis, the Republican presidential candidate, said in an interview with Fox News, “Even before this agreement, the United States was leaning toward bankruptcy.”

“Investor sentiment will be tempered by the fact that the debt ceiling agreement is not completely over the finish line,” said Interactive Investors head of market Richard Hunter. did.