- U.S. stocks ended higher on Wednesday.
- Large tech stocks rose, but Nvidia was volatile throughout the session.
- Meanwhile, traders are awaiting upcoming inflation data for further guidance on rate cuts.
U.S. stocks rose on Wednesday as traders braced further losses at Nvidia.
Major stock indexes were flat or slightly down, while government bond yields rose.
Nvidia shares were volatile, selling off early before closing slightly higher as the chipmaker lost more than $400 billion in market value in the past four days and investors are questioning how far artificial intelligence-driven technology deals will go.
Tech stocks were generally slightly higher on Wednesday, with the Nasdaq Composite Index rising throughout the day. Large-cap stocks also rose, with Amazon reaching a market cap of $2 trillion for the first time in history. The tech giant closed at $193.61, up nearly 4% during the trading session. Tesla shares rose 5%, and Apple shares rose about 2%.
The technology sector is on track to finish off a strong first half of 2024, with the Nasdaq up 20% so far.
Meanwhile, traders are bracing for Friday’s release of personal consumption expenditures inflation, the Fed’s preferred inflation gauge, which economists surveyed by Dow Jones expect prices to have risen 2.6% last month from a year earlier.
A higher-than-expected inflation reading could give the market reason to expect fewer or no rate cuts this year. Currently, investors see a 61% chance that the Fed will cut rates at least two times in 2024, according to the CME FedWatch tool.
Treasury yields rose sharply on Wednesday. The 10-year note rose 8 basis points to 4.318%. The two-year note rose 5 basis points to 4.745%.
As of the close of trading at 4pm on Wednesday, U.S. stock indexes were as follows:
What else is happening today:
Commodities, Bonds and Cryptocurrencies:
- West Texas Intermediate crude oil fell 0.24% to $80.64 a barrel, while the international benchmark Brent crude oil edged down to $84.95 a barrel.
- Gold fell 0.9% to $2,309.70 an ounce.
- The yield on the 10-year Treasury note rose 8 basis points to 4.318%.
- Bitcoin falls 1.75% to $61,048.74.
