Key points:
- Nasdaq composite index closed at a record high of 16,920.79, gaining 1.3% last week.
- Impressive earnings report from Nvidia drives investor interest in AI-related stocks.
- Nasdaq achieves nearly 9% gain in May, leading major indices.
The Nasdaq composite index (Symbol: NAS100) surged on Friday, erasing earlier weekly losses and closing at a record high of 16,920.79.
This marks a 1.3% increase for the week, driven by strong performance in tech shares. Standout earnings report from Nvidia (Symbol: NVIDIA) spurred investor interest in AI-related stocks, contributing to the rally of the tech-heavy index.
Nvidia leads the rally in May
Robust results from Nvidia have bolstered confidence in the tech sector, highlighting the growing demand for AI technologies. This investor enthusiasm propelled the Nasdaq to a nearly 9% gain in May, making it the top-performing index for the month.
SEE: Nvidia continues upward trend from strong earnings report on the VT Markets trading app.
Happening this week
Looking ahead, markets will take a break today in observance of Memorial Day. Later this week, investors will turn their attention to GDP data, which is expected to show a 1.3% quarterly growth rate for the US economy.
The tech sector may continue to drive market gains if earnings reports remain strong. Although the performance of Nvidia has set a positive tone, market participants should watch for any shifts in sentiment as GDP data is released, as market performance could be influenced by macroeconomic factors such as inflation trends and monetary policy decisions.
Examples like the 2009 recovery post-financial crisis and the 2020 rebound from the COVID-19 market crash show how pivotal economic data can shape investor behavior.
