AI Momentum Propels Market to Record Highs as NVIDIA Dominates the Session

The stock market extended its record-breaking run today, with the S&P 500 climbing 0.2%, the Nasdaq Composite advancing 0.8%, and the Dow Jones Industrial Average rising 0.3%. The gains were powered almost entirely by mega-cap strength, led by NVIDIA’s explosive performance, which reignited enthusiasm across the artificial intelligence and semiconductor space.

NVIDIA surged 4.98% to $201.03, marking a new all-time high and its first close above the $200 threshold since its stock split. The rally followed a series of major announcements from the company’s GPU Technology Conference, where CEO Jensen Huang revealed that NVIDIA has secured over $500 billion in chip orders through 2026 for its Blackwell and upcoming Rubin architectures. Huang also disclosed that Blackwell chips are now being manufactured in Arizona — a symbolic move underscoring the company’s expanding U.S. production footprint.

The conference generated ripple effects across the market. Nokia jumped 22.2% after NVIDIA announced a $1 billion equity investment and a partnership to develop AI-native 5G-Advanced and 6G networks. Other AI-linked names such as Super Micro Computer, CrowdStrike, and Palantir also gained modestly after being mentioned in NVIDIA’s keynote.

As expected, the information technology sector led the day’s advance with a 1.6% gain, supported by widespread enthusiasm for AI-related innovation. Microsoft climbed nearly 2% after reaffirming its partnership with OpenAI, while the PHLX Semiconductor Index added 0.4% — a modest move considering NVIDIA’s outsized strength.

Beyond tech, mega-cap resilience was evident across several sectors. The consumer discretionary group rose 0.3%, bolstered by Tesla’s 1.8% rebound and a 1.0% gain in Amazon. As a result, the Vanguard Mega-Cap Growth ETF climbed 0.9%, and the market-weighted S&P 500 outperformed its equal-weighted counterpart, which fell 0.9%.

Elsewhere, the materials sector eked out a 0.1% gain, supported by earnings beats from Sherwin-Williams and Nucor. However, most other sectors finished in the red, with real estate (-2.2%) leading declines following Alexandria Real Estate’s sharp post-earnings drop of more than 19%. Utilities (-1.7%), energy (-1.1%), and consumer staples (-1.0%) also weighed on overall breadth, highlighting the market’s narrow leadership.

Small- and mid-cap stocks lagged again, with the Russell 2000 and S&P Mid Cap 400 losing 0.6% and 0.9%, respectively, as investors continued to favor large, growth-oriented names.

Ultimately, today’s rally was driven by a renewed wave of AI optimism centered on NVIDIA’s dominance — a familiar but potent catalyst for the broader market. While most sectors slipped, the strength of a few heavyweights was enough to lift the major indices to fresh records.

Traders now turn their focus to tomorrow’s FOMC decision, where a widely expected 25-basis-point rate cut could reinforce the growth narrative and help broaden participation beyond the tech and mega-cap names that have led this year’s gains.

Our FTinvest 11 model portfolio spent nearly the entire session in positive territory, reflecting a continuation of this week’s constructive tone. However, late-session selling erased the earlier gains, leaving the index down 0.06% at 851.51 by the close.

The day began with firm momentum as investors carried over optimism from prior sessions. Several growth-oriented holdings led the advance early on, briefly pushing the index higher before midday. Throughout most of the trading day, FTinvest 11 maintained a comfortable cushion above the flatline, supported by stability across several names.

As the afternoon progressed, however, modest profit-taking emerged, mirroring the cautious tone across broader markets. While no particular sector stood out as a major drag, the fading enthusiasm in mega-cap peers and selective softness in cyclical holdings gradually pared back the earlier strength.

The final print just below even underscores a market still grappling with short-term consolidation after a recent stretch of gains. Despite today’s mild decline, FTinvest 11 continues to hold near its upper range, suggesting underlying resilience and steady investor appetite heading into the latter half of the week.