Market Recap and Major Events: S&P 500 Hits Record High, Nvidia Surpasses Microsoft and Apple
The S&P 500 (SP500) managed to eke out a three-week win streak despite a stall in Wall Street’s bull market towards the end of the week. The highlight of the week was chipmaker Nvidia (NVDA) surpassing Microsoft (MSFT) and Apple (AAPL) to become the world’s largest publicly listed firm by market capitalization. The benchmark index achieved a significant milestone by surpassing the 5,500 point level for the first time ever, even though a combination of mixed economic data and profit-taking ahead of a massive $5.5T options expiry event tempered its weekly gain.
On the social media front, U.S. Surgeon General Vivek Murthy raised concerns about the impact of excessive social media use on youth mental health, advocating for warning labels on social media platforms similar to those on cigarettes. He highlighted the increased risk of anxiety and depression symptoms among adolescents who spend more than three hours a day on social media.
Amidst escalating defense spending and the stockpiling of weapons globally, tensions are rising as nations pick sides. Russia and Pyongyang signed a mutual defense pact, while NATO announced plans to increase the number of troops on high alert significantly. The threat of escalating Houthi attacks on ships in the Red Sea has also fueled calls for an expansion of defense forces.
In the business world, EV maker Fisker (OTC:FSRN) filed for Chapter 11 bankruptcy after months of struggling to stay afloat. The company cited market and macroeconomic headwinds as reasons for its financial troubles, with a production pause in place and doubts raised about its ability to continue operations.
On the economic front, the federal budget deficit is expected to swell to around $1.9T this year, surpassing previous estimates. The Congressional Budget Office also warned of a national debt exceeding $56T over the next 10 years, raising concerns about sustainability. In the eurozone, the ECB has cautioned several member countries over their excessive budget deficits, including Belgium, France, and Italy.
Overall, the week was marked by a mix of market milestones, economic challenges, and geopolitical tensions, setting the stage for a potentially volatile period ahead.
