🌳 Nvidia Overtakes Microsoft to Become the Most Valuable Company; SEC Closes Investigation on Ethereum
Macro & TradFi
Nvidia (https://www.bbc.com/news/articles/cyrr40x0z2mo) has overtaken Microsoft to become the most valuable public company in the world, with its market capitalization reaching $3.34 trillion, driven by its dominance in the generative artificial intelligence sector. The company's shares surged 3.6% on Tuesday, surpassing Microsoft's market value of $3.32 trillion and Apple's $3.29 trillion. Nvidia, which holds about 80% of the AI chip market used in data centers, saw its data center business revenue increase by 427% to $22.6 billion, representing 86% of its total sales. This significant growth in market value has enhanced CEO Jensen Huang’s net worth to approximately $117 billion, ranking him as the 11th wealthiest person globally.
Meanwhile, the U.S. budget deficit for fiscal 2024 (https://www.cbo.gov/system/files/2024-06/60039-Outlook-2024.pdf) is projected to rise to $1.915 trillion, marking a significant increase from last year's $1.695 trillion and the largest since the COVID-19 era (https://www.reuters.com/markets/us/cbo-projects-fy-2024-us-deficit-jump-19-trln-amid-higher-outlays-2024-06-18/). This 27% rise from the previous forecast of $1.507 trillion in February is attributed to higher spending on student loan relief, Medicaid, FDIC bank failure resolutions, and U.S. aid to Ukraine and Israel. The Congressional Budget Office (CBO) anticipates the deficit will grow further to $1.938 trillion in 2025, and the cumulative deficit for 2025-2034 is now expected to reach $22.083 trillion, an increase of $2.067 trillion from earlier projections. Public debt is projected to hit $50.7 trillion by 2034, amounting to 122% of GDP. The updated figures reflect recent legislative changes, technical revisions in debt interest and healthcare costs, and an improved economic forecast including higher GDP growth and immigration rates.
Lastly, the S&P 500 and Nasdaq recorded all-time high increases, largely driven by advancements in AI and significant rallies in tech stocks like Nvidia, which surged to a market cap of $3.22 trillion. On the economic front, U.S. retail sales in May experienced a modest rise of only 0.1%, falling below the forecasted 0.3% increase. Contrasting this, industrial production exceeded expectations, suggesting a complex economic environment. Notably, Micron Technology and Qualcomm witnessed significant stock gains, with Micron hitting a new record after surging 8.7%. In the S&P 500, the financial and technology sectors led gains, up 0.64% and 0.61% respectively, while communication services and consumer discretionary sectors lagged behind.
DeFi & CeFi
   •  SEC decides to close investigation into Ethereum
   •  Hashdex set to introduce spot ETF with both BTC and ETH
   •  Brazil’s tax department to summon info from foreign crypto    •  exchanges: Report
   •  Bitcoin NFTs surpass Ronin in all-time sales
The U.S. Securities and Exchange Commission (SEC) has decided to close its investigation into Ethereum (https://cointelegraph.com/news/sec-to-drop-ethereum-investigation-says-consensys) and whether it should be classified as a security, according to Consensys. This development is viewed as a significant victory for Ethereum developers and the broader industry, ensuring that transactions involving ETH will not be regulated as securities transactions. This decision follows previous concerns that had led the SEC to issue subpoenas to several companies as part of its investigation into the classification of ETH. By not being classified as a security, Ethereum remains more accessible and less regulated, which can encourage innovation. Developers can work on and deploy decentralized applications without the stringent compliance requirements that securities must adhere to, which can lead to faster and more diverse development within the Ethereum ecosystem.