Nvidia’s surge on Wall Street supported a weakening market on Tuesday, with the S&P 500 rising 0.4% and the Nasdaq Composite climbing 1.3%, its first gain in four days. However, the Dow Jones Industrial Average fell 0.8%. Nvidia’s 6.8% increase prevented a loss for the S&P 500, as the chip company’s shares rebounded after a recent slump. The demand for Nvidia’s chips for AI applications has been a driving force behind the market’s record highs, despite concerns about a possible stock market bubble. Market watchers are hoping for more diverse growth rather than reliance on a few AI companies. Pool Corp., a pool supply distributor, saw an 8% drop after cutting its financial forecast, highlighting consumer caution on big-ticket spending. SolarEdge Technologies also faced a 20.6% decline due to a bankrupt customer. The S&P 500 rose, with Carnival gaining 8.7% after raising its profit forecast. The bond market remained stable, with Treasury yields holding at 4.23%. The hope is for a timely interest rate cut by the Federal Reserve. Investors are anticipating a rate cut in September, but history shows that the market may experience a downturn post-cut. The reason behind the rate cut by the Federal Reserve is crucial for market reaction. If inflation slows, it could be positive for stocks, but if prompted by a looming recession, the impact may differ. Market analysis from Wells Fargo Investment Institute indicates potential post-rate cut declines in the S&P 500.
Article Source
https://www.latimes.com/business/story/2024-06-25/stock-market-today-nvidia-rebounds-and-its-back-to-masking-losses-for-the-rest-of-wall-street
