Nasdaq Surges To New Record Intraday High Amid Tech Sector Rally

Stocks have moved mostly higher during trading on Wednesday, with technology stocks leading the advance. The tech-heavy Nasdaq has subsequently spiked to a new record intraday high.

The Nasdaq reached a new high for the session in recent trading and is currently up 200.29 points or 1.2 percent at 17,057.34.

The S&P 500 is also up 31.63 points or 0.6 percent at 5,322.97, while the narrower Dow is down 22.21 points or 0.1 percent at 38,689.08.

The surge by the Nasdaq comes as tech stocks continue to take their cues from Nvidia (NVDA), with the AI darling soaring by 3.0 percent to a new record intraday high.

The advance by Nvidia is contributing to strength in the broader semiconductor sector, as reflected by the 3.1 percent jump by the Philadelphia Semiconductor Index.

Semiconductor equipment manufacturers Applied Materials (AMAT) and KLA Corp. (KLAC) are also posting standout gains after Barclays upgraded its rating on the stocks to Equal-Weight from Underweight.

Computer hardware stocks are also seeing substantial strength on the day, driving the NYSE Arca Computer Hardware Index up by 2.7 percent.

Shares of Hewlett Packard Enterprise (HPE) are skyrocketing by 11.8 percent after the technology company reported fiscal second quarter results that exceeded analyst estimates on both the top and bottom lines.

Biotechnology, software and networking stocks are also seeing notable strength, while airline stocks are turning in some of the best performances outside the tech sector.

The strength on Wall Street also comes following the release of a report from payroll processor ADP showing private sector job growth in the U.S. slowed by more than expected in the month of May.

ADP said private sector employment climbed by 152,000 jobs in May after jumping by a downwardly revised 188,000 jobs in April.

Economists had expected private sector employment to increase by 173,000 jobs compared to the addition of 192,000 jobs originally reported for the previous month.

While the bigger than expected slowdown in job growth suggests some economic weakness, the data has added to optimism about the outlook for interest rates.

Meanwhile, traders have largely shrugged off a separate report from the Institute for Supply Management showing service sector activity returned to growth in the month of May after contracting in April for the first time since December 2022

The ISM said its services PMI jumped to 53.8 in May from 49.4 in April, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 50.8.

With the much bigger than expected increase, the services PMI reached its highest level since hitting 54.1 in August 2023.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index slumped by 0.9 percent and China’s Shanghai Composite Index slid by 0.8 percent, while South Korea’s Kospi jumped by 1.0 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has risen by 0.3 percent, the French CAC 40 Index and the German DAX Index are both up by 0.8 percent.

In the bond market, treasuries have fluctuated over the course of the session but are currently seeing modest strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.1 basis points at 4.305 percent.