Investing.com — The S&P 500 closed at a new record high on Tuesday, as a rise in Nvidia, which overtook Microsoft (NASDAQ:) to become the No. 1 company by market capitalization, lifted the broader technology sector and overshadowed economic data suggesting U.S. consumers are becoming more cautious.
By 16:00 ET (20:00 GMT), the was up 0.3% to a new closing high of 5,487.97, having broken a record closing price of 5,490.74 earlier in the day. The was up 0.02%, and the was up 56 points, or 0.2%.
NVIDIA Overtakes Microsoft to Take the Title of Most Valuable Company
NVIDIA Corporation (NASDAQ:) rose more than 3%, giving it a market capitalization of $3.34 trillion, surpassing Microsoft’s $3.31 trillion to become the most valuable chipmaker.
The chipmaker’s recent surge in shares follows a bullish outlook from Rosenblatt Securities, which raised its price target on the company to $200 per share from $140, implying an upside of nearly 50% from the current share price.
Rosenblatt spoke about the potential for a surge in demand for Nvidia’s software over the next decade.It complements everything great about the hardware.”
Retail sales are weak
The United States grew 0.1% month-on-month in May, slower than expected, improving from a downwardly revised 0.2% contraction in April.
Economists had expected retail sales, which reflect mostly merchandise and are not adjusted for inflation, to rise 0.3 percent.
Weak retail sales could affect the overall economic outlook and, in turn, how the Federal Reserve approaches cutting interest rates later this year.
Tesla in fight over CEO Musk’s pay
In the corporate sector, shares of electric car maker Tesla (NASDAQ:) fell 1% as the company launched a fight to seek legal approval of its CEO’s massive $56 billion compensation package after shareholders voted in favor of the pay agreement, despite a judge having invalidated the pay earlier this year.
Meanwhile, shares of education technology company Chegg (NYSE:) rose 3% after the company announced plans to cut 23% of its global workforce as part of a broader restructuring.
Renner The company’s shares fell nearly 5% after the homebuilder forecast lower-than-expected home deliveries in the third quarter, a sign that demand for new homes is expected to remain weak as mortgage rates remain at 20-year highs.
GameStop Corp. (NYSE:) shares fell 2%, following a sharp drop the previous day, after CEO Ryan Cohen told investors that the video game retailer plans to operate a smaller network of stores.
