???? Nvidia's Meteoric $330B Surge!

Hala,

??? In a heated foodie showdown, Pubity fans crowned Moroccan cuisine as the "best in the world," with a 60% vote!(1)??????? Sorry, Mexican cuisine, you got guac-blocked with 40%!??????#ArabFoodForTheWin

amana’s Take

• The Federal Reserve held interest rates steady at the 23-year high of 5.25%-5.50%, but the real buzz is about a potential rate cut in September. With inflation showing progress and the job market cooling, Fed Chair Jerome Powell hinted that a rate reduction might soon be on the table. No firm decisions yet, but keep your eyes peeled.
• Cooling inflation gives the Fed room to breathe. The core Personal Consumption Expenditures index showed its lowest annual gain in over three years. The job market also shows signs of moderation, making a compelling case for the Fed to consider easing its policy.
• Despite the cautious tone, the Fed's latest policy statement exudes growing confidence about hitting the 2% inflation target. This sets the stage for a possible rate cut in the September meeting. Looks like the Fed might soon swap its hawkish feathers for a more dovish outlook.

Stock Market Update

???? With the Fed hitting a pause on rate hikes, US stocks threw a party on Wednesday! The S&P 500 climbed 1.58% to 5,522.30—its best day since February. The Nasdaq 100 rocketed 3.01% to 19,362.43, while the Dow added 0.24% to 40,842.79.(2) Bulls were dancing, bears were hibernating!

??↘? Meanwhile, most Mideast stocks were in the red after Hamas leader Ismail Haniyeh's death in Iran heightened tensions. Abu Dhabi fell 0.6% to 9,339, while Dubai slipped 0.4% to 4,268.(3) ???

???? Nvidia's Meteoric Rise!

Nvidia shares skyrocketed by 13%, adding an astounding $330 billion to its market value on Wednesday—a record one-day gain for any company on Wall Street.(4) The surge was fueled by expectations of continued high demand for Nvidia's top-tier processors after Microsoft and AMD reignited the AI rally with their bullish forecasts. Nvidia's stock now values the company at $2.88 trillion, making it the third most valuable on Wall Street. ????

?? Key Points in Nvidia's Meteoric Rise:

• Stock Surge: Nvidia shares rose by nearly 13%. ??
• Market Value: Added $330 billion in a single day. ??
• Current Valuation: Now valued at $2.88 trillion, third behind Apple and Microsoft.
• PHLX Chip Index: Jumped 7%, marking its biggest one-day gain since 2022. ??
• AI Impact: Boosted by Microsoft's and AMD's increased AI expenditures. ??

???? Setting Records

Nvidia's meteoric rise shattered the previous Wall Street record, which it also held, from February with a $277 billion gain. Despite a brief setback in July, the optimism around AI has reinvigorated chip stocks. With Microsoft ramping up its AI spending, Nvidia remains the top hardware producer for AI tech, securing its position in this high-stakes industry. How high will Nvidia soar? Stay tuned! ????

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Closer to Home?

• ?? UAE telecom giant e& reported AED28.3B ($7.7B) in H1 revenue, up 6% from a year earlier, with profits soaring 17% to AED5.5B ($1.5B), driven by a relentless quest for growth and innovation in the digital realm.(5)?e&'s on a roll! ??
• ?? Abu Dhabi's PureHealth Holding enjoyed a 53% YoY revenue hike to AED12.5B ($3.40B) in H1 2024, thanks to a growth spurt in hospitals, insurance, and procurement.(6) Talk about a prescription for success! ??
• ?? Meanwhile, the Central Bank of the UAE (CBUAE) kept the Base Rate at 5.40%, following the US Fed's lead. Short-term borrowing rates remain 50 basis points above the Base Rate.(7) Calm seas for UAE’s monetary policy! ??

What Else Is Trending

• ?? Speaking of, the Fed kept rates unchanged but hinted inflation was nearing the target. Fed Chair Jerome Powell also teased a potential September rate cut if inflation cools further, keeping markets on their toes.(8) ??
• ??? Meanwhile, oil prices surged 4% on Wednesday after the Hamas leader's assassination in Tehran, sparking fears of Middle East turmoil. WTI climbed 4.05% to $77.76 per barrel, while Brent rose 2.68% to $80.74.(9) ?
• ?? Lastly, gold prices gleamed, with spot gold shining 1.2% brighter to $2,437.39 as Fed's Powell hinted at a possible rate cut in September if inflation plays nice.(10) ??

??Quote of the Day

"Microsoft reported some deceleration in its core cloud business, but a huge increase in capex. That represents a transfer of wealth from Microsoft shareholders to Nvidia shareholders." — Gil Luria, senior software analyst at D.A. Davidson

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Sources:-(1) Pubity, (2) (8) (9) CNBC, (3) (5) (6) (7) Zawya, (4)(10) Reuters