Mega cap technology stocks bring upon market rally

Jan 8th, 2024 – Monday was characterized by a shift in investor sentiment brought upon the market by AMZN, MSFT, AAPL and, most notably, NVDA, which rose a staggering 6.61%. This positive shift in mega cap technology stocks contributed to a 2.2% increase in the NASDAQ index, which helped get the broader market out of last week’s slump. 

As aforementioned, shares of portfolio holding Nvidia (NVDA) (Purchased 0.2773 units @ $471.73), had a field day on monday, rising more than 6%. This astonishing performance came after the announcement of three new consumer focused graphics cards. In recent years Nvidia was known in the gaming world for these specific chips, however in this next generation, they will also have Artificial Intelligence applications, ranging from producing videos all the way to canceling out the background of video calls. This increase in horsepower could make the use of advanced artificial intelligence more widespread amongst Nvidia’s customer base. 

Arm Holdings (ARM) also had a very positive day (+8.41%). This increase was preceded by an increase in price rating, from $75 to $85 from Mizuho Financial Group. This increase in price was also aided by the stock’s poor performance last week, meaning investors were on the lookout for positive news to initiate a bounce back today. 

Portfolio holding Boeing (BA) (Purchased 0.15 units @ $248.79) fell 6.51%, following the grounding of several 737 Max 9 planes. This was due to an issue to do with a loose bolt in the side of the aircraft, which resulted in an emergency door detaching from the aircraft mid-flight. 

Author: Stefano Rizzi

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