The Information Technology sector led the S&P 500’s 11 sectors with a 1.3% rise. Nvidia saw a 3.6% jump, reaching a new record high after TSMC’s forecast revitalized AI chip demand. Other major chip players also gained, with Broadcom advancing 4% and Intel rising 1.9%.
On the other hand, healthcare stocks weighed on the Dow Jones, as Elevance Health fell sharply by 14.2% after lowering its full-year profit outlook. UnitedHealth and Centene followed suit, with declines of 1.7% and 9%, respectively, dragging down the overall performance of the healthcare sector.
Stock-Specific Highlights
TSMC’s stellar performance had ripple effects across the semiconductor industry, propelling Nvidia, a key AI chip player, to a new intraday high of $140.89. Nvidia, which has climbed over 180% year-to-date, continues to benefit from massive demand for its AI-focused products, with companies like Microsoft, Meta, and Google making substantial investments in its GPUs.
Meanwhile, Travelers Companies gained 7% after surpassing third-quarter profit expectations, while Netflix dropped 1.5% ahead of its earnings report. On the downside, EV-maker Lucid tumbled 14% following its warning of a larger-than-expected Q3 loss and a public offering announcement.