{"id":2267715,"date":"2024-06-14T08:28:02","date_gmt":"2024-06-14T12:28:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-stock-market-swell-is-more-of-a-magnificent-seven-surge-which-in-turn-is-more-of-an-nvidia-explosion\/"},"modified":"2024-06-14T08:35:00","modified_gmt":"2024-06-14T12:35:00","slug":"the-stock-market-swell-is-more-of-a-magnificent-seven-surge-which-in-turn-is-more-of-an-nvidia-explosion","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-stock-market-swell-is-more-of-a-magnificent-seven-surge-which-in-turn-is-more-of-an-nvidia-explosion\/","title":{"rendered":"The stock market boom is largely driven by a Magnificent Seven surge, primarily fueled by Nvidia&#8217;s explosive growth"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">36<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-stock-market-swell-is-more-of-a-magnificent-seven-surge-which-in-turn-is-more-of-an-nvidia-explosion%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2267715&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Economic growth remains solid but has slowed, and ongoing high inflation surpasses the Federal Reserve\u2019s 2% target, negatively impacting\u200b consumer sentiment. Despite <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sen-tim-scott-launches-2022-senate-reelection-bid\/\" title=\"Sen. Tim Scott Launches 2022 Senate Reelection Bid\">low unemployment rates<\/a>, the tight labor market contributes to inflation concerns. \u200dOne clear positive in the economy is the \u2064strong performance of the stock market, notably highlighted \u2064by Nvidia&#8217;s significant growth. Nvidia, benefiting from shifts in chip manufacturing \u2062preferences and the AI boom, saw its valuation reach $3 trillion, making it the third company ever to do so and surpassing Apple to become the second-largest company behind Microsoft.<\/p>\n<p>While\u2063 the broader stock market shows gains, with the NYSE Composite up 27% since President Biden took office, these increases are mitigated by inflation and primarily driven by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-former-intel-officials-who-claimed-hunter-bidens-laptop-was-disinformation-are-at-it-again\/\" title=\"The Former Intel Officials Who Claimed Hunter Biden\u2019s Laptop Was \u2018Disinformation\u2019 Are At It Again\">major tech firms<\/a>. The group known as the Magnificent Seven, including Nvidia, Alphabet, Amazon, Apple, Meta, Microsoft, and Tesla, has significantly outperformed other companies, contributing most to the overall market\u2064 increase. This concentration of growth in large tech companies highlights disparities that have been exacerbated under &#8220;Bidenomics,&#8221; with major firms benefiting more than smaller \u2064companies\u200b and reflecting broader wealth inequalities.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>Economic growth, while still robust, is slowing. At the same time, <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/inflation\/\" target=\"_blank\" rel=\"noopener\" title>inflation<\/a> continues to outpace the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\" target=\"_blank\" rel=\"noopener\" title>Federal Reserve<\/a>\u2018s 2% target, hurting consumer sentiment in the process. The <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/unemployment\/\" target=\"_blank\" rel=\"noopener\" title>unemployment rate <\/a>continues to hover around half-century lows, though the persistently tight labor market further fueling inflation means that these job vacancies aren\u2019t exactly something to brag about. But the most unambiguously strong feature of the economy is the stock market, and it is booming.<\/p>\n<p>The biggest market headline of the year is the ascension of Nvidia, which became the third company in history to reach a $3 trillion valuation, surpassing Apple to become the second-biggest company behind Microsoft. Fueled by the West\u2019s preference for \u201cfriendshoring\u201d chip manufacturing away from <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/china\/\" target=\"_blank\" rel=\"noopener\" title>Chinese <\/a>influence, as well as the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-bets-25-billion-that-ai-boom-is-far-from-over\/\" title=\"Nvidia gambles B on AI's enduring success.\">artificial intelligence boom<\/a>, Nvidia\u2019s stock is up 217% in the past year, a clear success story for an otherwise lackluster economy.<\/p>\n<figure><figcaption>President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2024 exhibition in Taipei, Taiwan, Sunday, June 2, 2024. (AP Photo\/Chiang Ying-ying)<\/figcaption><\/figure>\n<p>Equities do not incorporate the entire economy, and no president deserves complete credit or blame for market performance. But compared to all the other lackluster, if not abysmal, metrics President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/joe-biden\/\" target=\"_blank\" rel=\"noopener\" title>Joe Biden<\/a> has to brag about, his most powerful appeal to inflation-wary voters is the strength of the stock market. In absolute terms, the New York Stock Exchange Composite is up some 27% since Biden took office, outpacing both the nearly 20% inflation wrought in that time and the 5% decrease in real average weekly wages. Although the wealthy own a disproportionate share of assets traded in the stock market, nearly two-thirds of all Americans polled by Gallup report owning some equities, which include direct stock holdings, as well as individual retirement accounts and 401(k)s.<\/p>\n<p>But, of course, not all markets are created equal. The stock market swell isn\u2019t much greater than that when you account for inflation. And more than a \u201cstock market\u201d boom, it\u2019s a Magnificent Seven surge, which, in turn, is fueled by AI and the Nvidia explosion.<\/p>\n<p>In inflation-adjusted terms, the S&#038;P 500 is up 17% since Biden took office, an admirable amount but one that pales in comparison to the 54% increase in the index under former President Donald Trump\u2019s four years in the White House. The inflation-adjusted Nasdaq 100 is up 22% under Biden \u2014 good, but a far cry from the 140% increase under Trump. And digging deeper into that growth, it\u2019s clear that just as inflation exacerbates the chasm between the working class and the wealthy, \u201cBidenomics\u201d has primarily benefited the biggest companies.<\/p>\n<p>In the last year alone, the Magnificent Seven \u2014 Nvidia, as well as Alphabet, Amazon, Apple, Meta, Microsoft, and Tesla \u2014 grew by 76%, contributing the majority of the 26% of the S&#038;P 500 overall. From October 2022 until the start of this year, the Magnificent Seven was up more than 60% compared to the rest of the 493 companies in the index, whose stock prices didn\u2019t increase a full 30%. In the past year, whereas the earnings estimates have fallen among the 493, Mag7 earnings are up nearly 30%.<\/p>\n<p>But even within the prestige of the Mag7, Nvidia seems to be doing all the heavy lifting. <a href=\"https:\/\/www.cnn.com\/cnn-underscored\/money\/magnificent-7-stocks\" target=\"_blank\" rel=\"noopener\" title>In the first five months of the year<\/a>, Nvidia\u2019s stock price increased by more than 100%. By contrast, Meta increased 32%, Alphabet 23%, Amazon 16%, and Microsoft 10%. Apple and Tesla stock fell from the start of 2024, with the S&#038;P 500 up a mere 11% overall.<\/p>\n<p>Recall that the Mag7 comprises fewer than 30% of the S&#038;P 500 and just 41% of the Nasdaq. When we boast that the stock market is soaring, we mean the Mag7, and when we boast of the Mag7\u2019s performance, we mean Nvidia.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>Again, given the diplomatic reality that we cannot remain dependent on the South China Sea for semiconductors and the raw potential of generative AI, it\u2019s not a bad bet to assume that Nvidia will continue to explode. As a matter of sheer scope, Nvidia\u2019s market cap is now larger than the entire annual economic output of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/russia\/\" target=\"_blank\" rel=\"noopener\" title>Russia<\/a> and <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/canada\/\" target=\"_blank\" rel=\"noopener\" title>Canada<\/a>, and it\u2019s tantamount to the entire trading value of the London Stock Exchange. A rising tide lifts all boats in finance, and the continued growth of Nvidia translates to pensions, retirement funds, and real wealth dramatically outpacing the scourge of inflation.<\/p>\n<p>The stock market as a whole is much less robust than the Magnificent Seven makes it seem, but for that, we have Nvidia to thank in particular.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Economic growth is robust but slowing, while inflation exceeds the Federal Reserve&#8217;s 2% target, dampening consumer sentiment. Unemployment remains at near half-century lows, but the tight labor market contributes to ongoing inflation, making the high number of job vacancies less positive<\/p>\n","protected":false},"author":2693,"featured_media":2267716,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/AP24154501992165.jpg.optimal.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2267715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/AP24154501992165.jpg.optimal.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2267715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2693"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2267715"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2267715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2267716"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2267715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2267715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2267715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}