U.S. Stock Markets Take a Breather

After impressive record chases, the US stock markets took a breather on Tuesday. The gains remained modest, while the semiconductor sector continued its success. Nvidia, with its spectacular surge, stole the spotlight from the stalwarts Apple and Microsoft, becoming the most valuable company in the USA. The Dow Jones Industrial closed at 38,834.86 points, marking a slight increase of 0.15 percent. The broader S&P 500 hit a new all-time high during the day and ended the trading session up 0.25 percent at 5,487.03 points. The previous day, the S&P 500 had already reached a record high. The tech-heavy Nasdaq 100 showed little change, closing with a minimal gain of 0.03 percent at 19,908.86 points. Thus, the index missed a sixth consecutive record high as well as breaking the symbolic 20,000 point mark. The relentless rally of semiconductor stocks continued. Shares of Broadcom, Qualcomm, Micron Technology, and Nvidia reached new heights. Nvidia stood out particularly, surpassing Microsoft and Apple with a price gain of 3.5 percent and a market value of around $3.3 trillion. The decline in Apple and Microsoft's stocks further favored Nvidia. Analyst Konstantin Oldenburger emphasized that investors currently place higher importance on long-term success, especially due to the hype surrounding Artificial Intelligence, than they did at the beginning of the year. The 'dream of eternal revenue and profit growth' currently dominates all market movements. Chip stocks like Applied Materials, KLA, and Lam Research also hit new record levels. These shares are also listed in the Nasdaq 100. Boeing recorded the biggest loss in the Dow with a 1.9 percent drop. According to media reports, the head of GE Aerospace declined an offer to move to a comparable position at Boeing. Additionally, Boeing CEO Dave Calhoun faced criticism over aircraft safety issues during a hearing before US Senators. Lennar's shares fell by 5 percent, despite the construction company surpassing expectations in the past quarter. However, a disappointing outlook for the current quarter weighed on the stock. Following weaker economic data, the US bond market gained ground on Tuesday. The futures contract for ten-year bonds rose by 0.34 percent to 110.78 points, while the yield on ten-year government bonds fell to 4.22 percent. In New York currency trading, the Euro lost its interim gains against the US Dollar, last trading at $1.0739. The European Central Bank (ECB) had previously set the reference rate at $1.0715, equivalent to a rate of 0.9332 Euros.