Nvidia now makes up 8% of S&P 500, highest share for any stock since 1981

Source Cryptopolitan

Nvidia has climbed to about 8% of the S&P 500, the biggest share any single company has had in the index since 1981, according to data from CNBC.

The only other stock to cross 7% was Apple in 2023. Even in the height of the 2000 dot-com bubble, Microsoft and General Electric never went past 4%.

IBM’s peak in 1984 was about 6%, which now sits below Nvidia’s new record. This level means Nvidia’s daily price changes can sway the entire index more than any other company has in over four decades.

The scale of Nvidia’s weight also shows how concentrated the market has become. One stock now holds a share bigger than any company during several of the most famous bull markets. That includes the 1999–2000 tech frenzy and IBM’s mid-80s corporate peak.

U.S. approves H20 chip sales to China after earlier ban

The U.S. Commerce Department has begun issuing licenses for Nvidia to export its H20 AI chips to China. The move comes after Washington reversed an April ban last month. Nvidia had created the H20 to comply with Biden-era rules on AI chip exports, but those restrictions still stopped shipments to China earlier this year.

The company had warned in July that the sales ban could wipe $8 billion from its quarterly revenue. During the same month, Nvidia applied for licenses and was told approvals would be fast.

On Wednesday, CEO Jensen Huang met with President Donald Trump at the White House, according to Reuters. It is still unclear how many licenses have been issued, which Chinese buyers can receive the H20, or the total shipment value.

The new clearance reopens one of Nvidia’s biggest markets. While the H20 was designed to stay inside the export limits, the previous ban cut the company off from Chinese clients until now.

Apple, Alphabet flagged as overbought while others slide

Apple and Alphabet are now among Wall Street’s most overbought stocks by the 14-day relative strength index (RSI), which measures momentum. An RSI above 70 can suggest a pullback is near.

Apple’s RSI reached 72 after a 13.3% weekly jump — its biggest gain in over five years — boosted by an extra $100 billion pledge for U.S. investment. That adds to the $500 billion commitment made in February.

Apple’s expanded domestic production plans appear to shield it from Trump’s newly announced 100% tariffs on imported semiconductors and chips.

Trump said on Wednesday that companies building in the U.S. would not be subject to the duties. The statement came after Apple’s July 31 earnings showed 10% revenue growth, its fastest since late 2021.

Alphabet rose 6.5% for the week, with its RSI hitting 75. The company’s late-July earnings showed revenue up 14% year-over-year. Alphabet also plans to raise 2025 capital spending by $10 billion to handle rising demand for its cloud services.

On the opposite side, Airbnb is among the most oversold stocks. Its RSI sits at 29 after a 5.3% drop this week. While it beat second-quarter forecasts, Airbnb warned of a weaker second half, guiding Q3 revenue between $4.02 billion and $4.10 billion, with analysts expecting $4.05 billion.

The Trade Desk took the biggest hit. Its shares fell 37% for the week and plunged 39% on Friday alone, the worst single day in company history.

The drop followed second-quarter results that topped estimates but were overshadowed by new competition from Amazon in online ads and the resignation of CFO Laura Schenkein.

CEO Jeff Green also mentioned inflation pressures from Trump’s tariffs during the earnings call. Multiple analysts, including those from Citi, Wedbush, Bank of America, and MoffettNathanson, cut their ratings.

Citi analyst Ygal Arounian wrote, “We still don’t believe Amazon is the main factor here, but results will inevitably raise more investor questions around the competitive environment and will remain an overhang.”

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US core PCE inflation set to rise 2.9% YoY in July amid rising bets of Fed rate cut in SeptemberThe United States Bureau of Economic Analysis (BEA) will publish the Personal Consumption Expenditures (PCE) Price Index data for July on Friday at 12:30 GMT. 
Author  FXStreet
Aug 29, Fri
The United States Bureau of Economic Analysis (BEA) will publish the Personal Consumption Expenditures (PCE) Price Index data for July on Friday at 12:30 GMT. 
placeholder
Gold Price Forecast: XAU/USD declines below $3,450, Fed rate cuts bets might cap its lossesThe Gold price (XAU/USD) trades in negative territory near $3,440 during the Asian trading hours on Monday.
Author  FXStreet
6 hours ago
The Gold price (XAU/USD) trades in negative territory near $3,440 during the Asian trading hours on Monday.
placeholder
Japanese Yen reverses intraday downtick against USD; seems poised to appreciate furtherThe Japanese Yen (JPY) struggles to capitalize on its modest Asian session uptick and remains below mid-147.00s at the start of a new week.
Author  FXStreet
5 hours ago
The Japanese Yen (JPY) struggles to capitalize on its modest Asian session uptick and remains below mid-147.00s at the start of a new week.
placeholder
Gold rallies to over four-month top amid Fed rate cut bets, weaker USD, geopolitical risksGold gains strong follow-through traction at the start of a new week and jumps to the $3,486 area, or the highest level since April 22, during the Asian session.
Author  FXStreet
2 hours ago
Gold gains strong follow-through traction at the start of a new week and jumps to the $3,486 area, or the highest level since April 22, during the Asian session.
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, and XRP downtrend eases, focus shifts to recoveryBitcoin (BTC), Ethereum (ETH), and Ripple (XRP) start the week on a cautious note after sharp declines in the previous week. BTC hovers around $107,600 at the time of writing on Monday, while ETH and XRP defend their key support levels.
Author  FXStreet
2 hours ago
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) start the week on a cautious note after sharp declines in the previous week. BTC hovers around $107,600 at the time of writing on Monday, while ETH and XRP defend their key support levels.
goTop
quote