Full gas, no breaks for Nvidia & the S&P500. Bitcoin is back, Australia's market hits new high
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US stocks hit brand new record highs, with the S&P500 bull market entering its third year in 'full gas no breaks' mode. The forces pushing the market higher over the past two years are only building momentum, forcing it to new highs overnight, this is despite the US dollar moving up and bond yields holding at July highs. Sentiment was also supported by two key factors: subdued inflation pressures after oil fell 2.5% and second a US Federal Reserve's Christopher Waller said the Fed should cut rates at a deliberate pace in the coming quarters.
What do you need to know? AI and technology, semiconductors, homebuilders, uranium, and stocks to benefit from China’s stimulus such as airlines and cargo stocks, all gained fresh legs overnight.
What does this mean to for you? Well the main themes that drove this 'running of the bulls' – AI and tech – are in focus. Nvidia $NVIDIA (NVDA.US)$ closed at a brand new record high $138 just a week after Nvidia’ CEO said demand for its latest chip, called Blackwell, is insane. Consider that Nvidia’s is earshot of becoming the world’s biggest company. It just needs to gain US$200 billion in market value before it can overtake Apple $Apple (AAPL.US)$ . And yes it’s possible for several reasons. Stocks like Nvidia and other chips such as AMD $Advanced Micro Devices (AMD.US)$ and Qualcomm $Qualcomm (QCOM.US)$ are moving up as they’ve been sold off and are not only expected to benefit from spending in the sector (which is expected to hit US$1.3 trillion by 2032) – but their earnings outlooks could be upgraded which would support share-price growth. Also consider at this stage, Nvidia’s revenue for the year ahead is expected to grow at 106%. While Apple’s revenue is only expected to grow 1.8%. So it could be just a matter time for Nvidia to become to world’s biggest company and stay higher.
Also consider the price of Bitcoin $BTC/USD (BTCUSD.CC)$ is breaking out and moving higher. Its up 5% in three days back at July highs as bets are now on for Trump to win the US election and Bitcoin could also gain further legs on the idea of the US central bank cutting rates again. With bets rising again for the Fed to cut rates. So watch Bitcoin ETFs like the world biggest IBIT $iShares Bitcoin Trust (IBIT.US)$.
Today the Australian market followed Wall Street higher rising 0.64% at the open hitting a new record high of 8,304 in the first 25 minutes of trade. Miners are up the most with focus on commodities such as aluminum and copper, with their prices moving up amid AI and tech hype. While uranium stocks like Deep Yellow $Deep Yellow Ltd (DYL.AU)$ and Boss Energy $Boss Energy Ltd (BOE.AU)$ are higher today following the US uranium bull run. Australian banks are higher too, while the traders weigh up the federal government preparing to ban credit card surcharges by January 2026.
For more detail watch my Ausbiz media interview filmed at 8.45am Today, Tuesday October 15.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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