Nvidia’s (NVDA.O) remarkable stock rally continues to cast a significant influence over the S&P 500 index (.SPX), raising concerns about the broader market’s vulnerability should the chipmaker’s fortunes waver.
The semiconductor giant has seen its shares soar by 140% this year, a surge that has contributed approximately 25% of the S&P 500’s overall 17% gain. Nvidia’s dominance is largely attributed to its advanced chips, which are considered crucial in artificial intelligence applications.
On Wednesday, Nvidia’s stock saw an impressive 8.2% increase, which played a pivotal role in propelling the S&P 500 to its largest intraday gain in nearly two years. The index, which had been down by 1.6%, ended the day up by 1.1%, demonstrating the significant impact of Nvidia’s market performance on broader market movements.
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