Despite a rise in tech stocks Tuesday, led primarily by Nvidia’s Artificial Intelligence (AI) conference, the markets maintained stability. With investors now closely examining the policies to be outlined in the Federal Reserve’s two-day gathering, attention has moved away from Nvidia, whose stocks reported a minor decrease on the same day.
The S&P 500 futures saw a slight decline by 0.12%, Nasdaq 100 futures dropped by 0.26%, and the Dow Jones Industrial Average futures lost 18 points (0.05%). Nevertheless, Asian markets such as Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index remained resilient with closures on a higher note. The dollar dipped against six major currencies, causing a surge in the euro. Following suit, Brent crude displayed a modest decline while gold value improved, indicating an increase in risk aversion among investors.
A streak of three consecutive down sessions was halted by the S&P 500 during normal trading hours. A blend of promising earnings reports and positive economic indicators led to both S&P 500 and Nasdaq Composite rebounding, nearly recuperating previous weeks’ losses.
Nvidia’s value was assessed intricately by investors after a roughly 1% drop in the company’s shares in post-market trading. This sparked interest amongst investors, as Nvidia’s CEO introduced ‘Blackwell’, the new AI chip that emits many AI procedures more effectively.
Shares of Alphabet and Apple saw a rise on Monday after a Bloomberg report suggested potential collaboration between these tech titans. This surge is reflective of investors’ confidence in the possible partnership, despite both companies remaining silent regarding the speculation.
As the Federal Reserve starts its two-day policy meeting on Tuesday, Wall Street keenly watches for signs of future fiscal policy. Amid unsettling inflation data, investors fear that the central bank might propose sustained high interest rates. However, predictions indicate a 99% probability that benchmark interest rates will stay the same this week.
The result of the Federal Reserve’s meeting is eagerly anticipated. The implications of the Fed’s decision could dominate discussions for the week, with traders awaiting possible signs of an interest rate hike. However, there is a general consensus that the Fed’s Chair, Jerome Powell, will maintain the status quo given the ongoing pandemic recovery. As such, the short-term trajectory of the stock market largely hinges on this crucial decision. Financial analysts eagerly await clarity, which is expected to come on Wednesday, with global markets expected to remain volatile until then.
