CNBC Daily Open: Nvidia unseats Microsoft as world's most valuable company

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

Nvidia takes the crown
Nvidia on Tuesday surpassed Microsoft to become the world's most valuable public company with a market cap of $3.34 trillion. The milestone comes after a remarkable 170% surge in its share price this year, and a more than nine-fold increase since the end of 2022 fueled by the boom in generative artificial intelligence. Nvidia has an 80% share of data center AI chip market as Microsoft, Apple, Alphabet and Amazon snap up processors needed to power AI models.

Another record high
The S&P 500 inched its way to another record high as Nvidia dethroned Microsoft as the world's most valuable company. The Nasdaq Composite just about ended the day in positive territory. The Dow Jones Industrial Average inched up 56 points. May retail sales raised concerns about the world's biggest economy, while U.S. oil prices rose for the second day. The yield on the 10-year Treasury fell.

Under fire
Boeing CEO Dave Calhoun faced intense criticism from a Senate panel over the company's safety issues, whistleblower complaints, and his compensation. Senator Josh Hawley accused Calhoun and Boeing of "strip mining" the company by cutting corners and criticized his $33 million compensation package. "Frankly sir, I think it's a travesty that you are still in a job," Hawley said. Calhoun defended Boeing's efforts to improve manufacturing quality and safety, following a recent incident involving a midair door panel blowout.

Tepid sales growth
U.S. retail spending grew by a meager 0.1% in May, falling short of