Markets today: NVIDIA gets support,
Despite NVIDIA’s big numbers, fears of an AI bubble may be over. The worry among investors is that all the dollars pouring into AI chips and data centers may not produce the huge profits and economic productivity they promised.
Yes, Nvidia expects to sell another $65 billion in the next three months, which is more than expected. But will all these chips generate huge profits for Amazon and other companies that use them? This question – whether all the investment in AI is worth it in the end – remains unanswered.
The latest survey of global fund managers conducted by Bank of America shows a record percentage of investors who say companies are “watching.”
Amazon went from an early gain of 2.1 percent on Thursday to a loss of 2.5 percent. Palantir Technologies shares jumped 5.5 percent compared to a loss of 5.8 percent.
The last time the stock market changed hands so completely in one day was as wild as it was in April, when President Donald Trump shocked the world with his tough “liberal” taxes.
As for the second concern that has exacerbated the crisis: interest rates, the US government’s jobs report on Thursday was mixed and offered some relief. Financial markets initially appeared to be cherry-picking data to isolate encouraging signals, according to Sai Sha Shah, global asset manager at Skitist.
The report showed that hiring by US employers was stronger in September than expected, which may indicate that the economy remains strong. But he also said the unemployment rate was rising slightly, which could provide a hereditary reason to cut the key interest rate at the next meeting in December.
Traders still view a December rate cut as preferable, giving it a roughly 40% chance, according to CME Group data. But this is better than the 30 percent chance they saw the day before.
What the Fed does matters to the stock market because interest rates are rising to record levels due in part to expectations of further rate cuts. The Fed has already cut interest rates twice this year to stabilize a sluggish labor market. But lower interest rates could lead to higher inflation, which remains stubbornly above the 2 percent Aud said.
On the winning side of the fence was Walmart stock, which rose 6.5 percent after the retailer delivered another outstanding quarter. Strong sales and profits were reported at Wall Street Regency as it continues to attract Americans hurt by the economy and prices.
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That wasn’t enough to swamp Nvidia’s technology losses. Companies in the cryptocurrency industry also suffered, as the price of Bitcoin fell to its lowest price since April. Stock markets fell 10.1 percent, and Coinbase Global sank 7.4 percent.
Overall, the S&P 500 fell 103.40 points to 6,538.76. The Dow Jones Industrial Average jumped 386.51 to 45,752.26, and the Nasdaq Composite fell 486.18 to 22,078.05.
In the bond market, the yield on 10-year Treasury bonds rose to 4.09 percent from 4.13 percent on Wednesday.
In overseas stock markets, the number of investors is rising across Europe and Asia.
Japan’s Nikkei 225 jumped 2.6 percent, and South Korea’s Kospi rose 1.9 percent in two of the biggest gains.
Wing
The Market News Recrap is a summary of the day’s trading. Get all of useKadani in the afternoon.
