Nvidia shares reach record high as US economic optimism boosts tech sector

Nvidia's shares reached a new record on Monday, closing at $138.07, driven by renewed confidence in the US economy. This marks a recovery for big tech stocks after a summer slump, with Nvidia's market value nearing $3.39 trillion. The tech sector has rebounded since the Federal Reserve began cutting interest rates last month. IT and communication services, previously underperforming, have become top performers in the S&P 500, with the IT sub-index rising over 7 percent. Analysts note that while tech is recovering, the market environment differs from earlier in 2024. More than 60 percent of S&P 500 stocks have gained, and strong earnings reports from major banks have boosted optimism about the US economy and global growth prospects.