Index Hits Record as Nvidia Takes Market Cap Crown

Major U.S. equities indexes ticked higher on Wednesday as artificial intelligence (AI) chip behemoth Nvidia (NVDA) overtook Microsoft (MSFT) as the largest publicly traded company by market capitalization.

The S&P 500 added 0.3%, posting an all-time closing high for the second straight day. A minimal gain of less than 0.1% for the Nasdaq was enough to extend the tech-heavy index’s string of record closes to seven. The Dow was up 0.2%.

Shares of GE Vernova (GEV)—the energy company that completed its spinoff from the General Electric conglomerate at the beginning of April—jumped 6.4%, notching the day’s top performance in the S&P 500. The company announced last week that it sold its steam energy business to French state-owned firm EDF and signed a memorandum of understanding with Ukrainian company DTEK to develop renewable energy projects in Ukraine and the European Union.

Walgreens Boots Alliance (WBA) shares advanced 6.3%. Although the pharmacy giant is navigating numerous challenges including high debt levels and lawsuits related to the opioid crisis, the stock appeared in a Monday report from The Motley Fool highlighting its attractive dividend yield. The story also voiced confidence in the capacity of CEO Tim Wentworth, who stepped into the role last year, to lead a turnaround for the company. 

Shares of Teradyne (TER), a manufacturer of automated test equipment, added 4.8% after UBS raised its price target and reiterated its “buy” rating on the stock. According to analysts, the rallying Teradyne stock could be poised to continue its uptrend, with opportunities including a recovery in testing requirements from Apple (AAPL) in the next few quarters along with share gains in the expanding memory test market.

Shares of Ball Corp. (BALL), which makes aluminum packaging for beverages and other household products, suffered the heaviest losses of any S&P 500 component, tumbling 6.3%. The steep losses came as the price of aluminum popped to a two-year high amid concerns about output from China and expectations that the metal will see robust demand.

Although homebuilder Lennar (LEN) exceeded analysts’ sales and profit estimates in its fiscal second-quarter results, the company’s forecast for home deliveries in the current quarter came in below expectations, and its shares slipped 5.0%.

Shares of cosmetics maker Estee Lauder (EL) declined 3.6%. Although the company is seeing demand growth in emerging markets, soft sales in China remain a concern, with weakness in the country’s prestige beauty market amid reduced consumer confidence.