Monday, December 23, 2024

How South Korea is Countering North Korea’s GPS Jamming Tactic

On June 19, Incheon announced that it...

New Breakthrough Could Unlock the Secrets of Supermassive Black Holes

A significant breakthrough today in addressing the final parsec problem, which affects the formation of supermassive black holes.

SEVENTEEN Takes the Stage at Tecate Pa’l Norte 2025: What to Expect!

SEVENTEEN will make history as the first Korean act to perform at Tecate Pa'l Norte 2025 in Monterrey, Mexico, from April 4-6.

Nvidia’s New Highs and Lows: Record Prices to Legal Challenges in One Day

EconomyNvidia's New Highs and Lows: Record Prices to Legal Challenges in One Day
© News1

On June 17, the leading Exchange Traded Fund (ETF) investing in S&P 500 tech companies, the Technology Sector SPDR Select Sector Fund (ticker symbol XLK), adjusted its investment weight in Nvidia from the previous 6% to 21% during its regular asset reallocation (rebalancing). It’s also notable that it reduced Apple’s proportion to 4.5%.

Bloomberg evaluated this as a significant event, indicating that the leading tech stock in the U.S. has shifted from Apple to Nvidia. Considering XLK ETF’s total assets under management total $71.2 billion, it’s expected that large-scale purchase orders for Nvidia will be issued during the asset reallocation process.

As a result of the asset reallocation, the ETF is expected to purchase $11 billion in Nvidia shares and dispose of $12 billion in Apple shares.

Upon hearing the news, Nvidia’s stock rose in the early trading hours of the New York Stock Exchange on June 17. Nvidia achieved an all-time high during the trading session but underwent a downward reversal and closed down 0.68% from the previous trading day due to news of being embroiled in a lawsuit.

Yahoo Finance

On June 17, the U.S. Supreme Court agreed to review a class-action lawsuit against Nvidia for not disclosing its chip sales for cryptocurrency mining.

Presiding over the first trial, the federal district court dismissed this lawsuit in 2021, but the federal appeals court accepted the plaintiff’s argument and allowed the class-action lawsuit.

As a result, it closed lower, but experts believe there is a high possibility of an upward reversal in the future.

It is of considerable significance that the most popular tech stock ETF in the U.S. has rebalanced, reducing Apple and significantly increasing the weight of Nvidia.

Check Out Our Other Content

Check Out Other Tags:

Most Popular Articles