Nvidia's Historic Rally Drives AI Software Stocks

This upward trend then spread to software stocks as well. Analyst Lee Hang-young stated, "Nvidia saw its largest-ever rebound. Based on Nvidia's single stock performance, it was the largest increase ever. This then led the overall rebound in AI stocks."

Nvidia rose by 8.7%, followed by Salesforce with 22.5% and CrowdStrike with 20.5%, demonstrating a strong tech-driven market trend. The Nasdaq 100 index continued its upward momentum today after yesterday's gains, and the gap with the Russell 2000 has significantly narrowed. Lee Hang-young commented, "Nvidia went up 8.7%. Salesforce also rose 22.5%. CrowdStrike went up 20.5%. The Nasdaq 100 went up yesterday and again today. There's not much difference between the Russell 2000 and the Nasdaq 100 anymore."

This is the second-largest increase in the entire U.S. stock market history, following Microsoft's $450 billion. Nvidia's surge, which is roughly three times the market cap of Samsung Electronics, has had a massive impact on the market. Lee Hang-young emphasized, "Nvidia's market capitalization increased by $443 billion today alone. For Nvidia, this marks its largest one-day surge ever. The record for the largest one-day gain for a single stock in the U.S. was held by Microsoft."

Lee Hang-young explained, "Salesforce jumped 22.58% with positive earnings guidance. CrowdStrike, a representative cybersecurity stock, saw positive earnings plus an upward revision to its annual guidance, leading to multiple price target upgrades and a 20.5% surge to an all-time high, pulling related ETFs up with it."

This means it allocates an equal proportion to all stocks, from large-caps like Microsoft to mid- and small-caps like Palantir. XSW, which includes a variety of stocks with equal weighting, is currently up 5.2% and has reached an all-time high. Lee Hang-young explained, "There's something called XSW. It's an S&P Software & Services ETF, and while its components are similar, it's equal-weighted. Equal-weighting means that Microsoft, Palantir, or any other company below them have the same weight. Today, diversified stocks like these reached an all-time high, up 5.2%."

Lee Hang-young commented, "Bitcoin has passed $80,000."

The S&P 500 Equal Weight Index has nearly reached an all-time high. In contrast, the Dow Jones and Nasdaq 100 have not yet surpassed their highs from June 2nd of this year. The Russell 2000 index is within 1.5% of its all-time high. Lee Hang-young mentioned, "The S&P Equal Weight is almost at an all-time high. Currently, the Dow Jones and Nasdaq 100 have not surpassed their highs since June 2nd of this year."

The current market shows a general weak trend, contrasting with the strength of big tech stocks. Most sectors, excluding Tesla, are in decline, with financial and consumer staples sectors showing widespread weakness. Only a few stocks, like Goldman Sachs and Lockheed Martin, maintain slight gains. Lee Hang-young explained, "As I mentioned, there aren't many stocks that have gone up. Most of these are completely wiped out. All wiped out except for Tesla."

Palantir's stock price is currently barely staying in positive territory. It remains approximately 10.4% below its all-time intraday high of $204. Lee Hang-young commented, "Palantir is barely in positive territory, honestly. Just barely. It's 10.4% away from its all-time high."

This product is one of the index-based products recommended to individual investors and continues to receive steady interest. Lee Hang-young stated, "MGK, based on closing price, is exactly 2% away. Exactly 2% left."

The TECL (TechB) ETF is composed of five core technology sectors. These sectors include Robotics and AI, Cloud and Data, Cybersecurity, Genomics and Immunology, and FinTech. Lee Hang-young explained TECL's composition, saying, "TechB, it just sounds exciting, doesn't it? Five tech breakthrough sectors: Robotics and AI, Cloud and Data, Cybersecurity, Genomics and Immunology, FinTech, and so on."

This is seen as a positive signal for investors. Lee Hang-young emphasized SCHD's performance this year, stating, "If you look at SCHD, it's up 25% this year. Double the index."

Currently, growth stock ETFs remain down more than 10% from their peaks. Meanwhile, there is high market interest in the Jackson Hole meeting, but Lee Hang-young characterized it as merely a social gathering where central bank governors from around the world meet and interact. He pointed out that historically, the market has shown an average 70% chance of rising after the Jackson Hole meeting, advising against over-immersion in its market impact. Lee Hang-young said, "You should understand the Jackson Hole meeting like this: it's where central bank governors from around the world gather and say, 'What's up?' and 'How are you doing?' and have coffee breaks and such."

Even when buying on days the U.S. stock market hits all-time highs, it tends to show sustained long-term growth. The fundamental reason for this upward trend is the continuous increase in corporate earnings. The S&P 500 earnings per share (EPS) is expected to exceed $400 next year, supporting the positive market outlook. Lee Hang-young emphasized, "Whether you buy on an all-time high day or any other day, U.S. stocks consistently rise. The reason they rise isn't arbitrary; it's because earnings increase."

He also highly recommended 'Fauda,' a drama about Israeli special forces, with a new season airing around September 2nd to 4th. Lee Hang-young mentioned, "On Apple TV, I'm currently watching 'Luck.' From September 2nd or 4th, 'Fauda' will finally be back," expressing his anticipation for both works.