US indices saw a rise on Tuesday morning following a three-day sell-off led by Nvidia, a top semiconductor company. The company lost $430 billion in market value within three days after briefly becoming the world’s largest company. Analysts believe the drop was due to profit-taking by investors rather than any fundamental issues with the company. Some investors saw the dip as an opportunity to increase their long-term exposure to Nvidia, taking advantage of the 17% drop in stock price. This week, investors are also paying attention to comments from Federal Reserve officials scheduled to speak and personal consumption spending data scheduled for Friday.
Federal Reserve Governor Michelle Bowman expressed concern about the risk of inflation but stated that interest rate hikes are not guaranteed this year. She mentioned the possibility of raising the target range for the federal funds rate at a future meeting if inflation remains high. In the commodities market, West Texas Intermediate Crude oil fell to $80.93 a barrel, while Brent Crude dropped to $86.08 a barrel. Gold prices decreased to $2,323.60 per ounce, and the 10-year Treasury yield rose to 4.25%. Bitcoin remained stable at $61,105.
Overall, US indices were mostly higher on Tuesday morning, as investors sought to reverse the downward trend caused by Nvidia’s sell-off. This shift in market sentiment allowed for an increase in long-term exposure to Nvidia as investors viewed the stock price drop as a buying opportunity. Federal Reserve comments and economic data are being closely monitored this week for any potential impact on market trends. As the market continues to react to recent developments, investors are keeping a close watch on key indicators to make informed decisions about their investments.
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https://www.businessinsider.com/stock-market-today-nvidia-sell-off-correction-recovery-tech-fed-rates-2024-6