Traders work on the floor of the New York Stock Exchange on September 9, 2022.
Brendan McDiarmid | Reuters
Stocks rose on Tuesday as the Federal Reserve kicked off its two-day policy meeting. Traders have also been keeping an eye on Nvidia following major announcements from the tech giant.
the Dow Jones Industrial Average He won 240 points or 0.6%. The 30-stock average was on track to have its best day since February 22 Standard & Poor's 500 It rose by 0.4%, and Nasdaq Composite Advanced 0.1%
The central bank is expected to keep interest rates unchanged on Wednesday. However, recent reports of worrying inflation have investors concerned that the central bank may signal that interest rates will remain higher for longer than expected.
Treasury yields fell broadly, boosting stocks. The 10-year Treasury yield fell 3 basis points to 4.312%.
Chip darling Nvidia rose 0.6% — recovering from an earlier loss — as investors weighed news from the first-ever GTC conference. CEO Jensen Huang unveiled Nvidia's latest AI chip, called Blackwell, which he described as a much more powerful successor to its chips that support many AI operations.
Super micro computer, the main supplier of building AI servers for Nvidia, fell more than 9.5% on news of the stock offering. Shares have risen more than 250% this year on AI enthusiasm, leading to the stock being added to the S&P 500 on Monday.
In another sign that the recent uptrend may be slowing, Bitcoin proxy Accurate strategy It fell more than 8%. The stock more than doubled in 2024 as Bitcoin surges to record levels.
According to Sam Stovall, chief investment strategist at CFRA Research, “healthy” market digestion following the recent market rally will either happen later than investors expect or will be deeper than they expect.
“The AI revolution has a long way to go, so any pullback we're seeing now will certainly not come to an end, just a simple absorption of recent gains,” Stovall said, adding that traders may “take profits.” Based on the known in response to the unknown.”
