- US markets climb.
- Nvidia, tech stocks up.
- Fed speech tomorrow.
4:15pm: Wall Street rallies
Wall Street ended Tuesday's trading session on a positive note as investors awaited the outcome of a crucial Federal Reserve policy meeting.
At the close, the Dow had gained 0.8% to reach 39,111 points, with the S&P 500 not far behind with a 0.6% rise to close at 5,179.
The Nasdaq rose nearly 0.4% to 16,167, with Nvidia's shares contributing to the uptick following AI updates.
Investor attention now turns to the Fed's meeting tomorrow, particularly on any hints regarding potential interest rate cuts amidst recent inflation concerns.
In the cryptocurrency realm, bitcoin experienced a pullback from its recent high.
2:44pm: Nasdaq back in green, S&P 500 and Dow Jones higher
Strong gains from the likes of Synopsys and Cadence Design Systems helped the Nasdaq to green territory on Tuesday afternoon, following a morning slump.
Come the afternoon, the Nasdaq Composite was up 51 points at 16,155, while the Dow Jones Industrial Average and S&P 500 had ticked up 222 points and 20 points to 39,012 and 5,170 respectively.
Nasdaq constituents Synopsis Inc and Cadence Designs System Inc helped buoy the index, with respective gains of 4% and 3.5% following mentions at Nvidia Corporation’s Nvidia GTC event on Tuesday.
Such updates on coordinated work on chips and artificial intelligence also boosted shares in Ansys Inc, which recently agreed to a takeover by Synopsis, alongside other tech firms.
Meanwhile, markets were widely waiting in anticipation of Wednesday’s Federal Reserve meeting.
Though no immediate rate cuts are expected, insight into when such reductions could happen is likely.
12:29pm: Stocks mixed at midday
The Nasdaq Composite recouped earlier losses to sit 9 points lower at 16,074 on Tuesday afternoon as markets braced for a key Federal Reserve meeting on Wednesday.
Both the S&P 500 and Dow Jones Industrial Average enjoyed gains in the meantime, rising 217 and 5 points to 39,007 and 5,154 respectively.
With eyes firmly fixed on Wednesday’s Federal Open Market Committee meeting, IG analyst Axel Rudolph noted markets were hoping policymakers would “provide more clarity with regards to the dot plot” - the de facto monetary policy forecast of the central bank.
Analysts largely expect the Fed to keep interest rates unchanged at 5.5%.
However, as City Index’s Fawad Razaqzada explained, “it's not the rates decision that [...] markets are worried about. It is forward guidance'.
He added: “Will the Fed still keep three rate cuts in its dot plots, or will it opt for two rate cuts for 2024 instead? That's the key question.”
A hawkish surprise is likely being anticipated, given recent strength in the US dollar, as per Razaqzada, though whether this materialises remains to be seen.
Among companies, International Paper Co (NYSE:IP, ETR:INP) soared over 8% on news it would appoint ex-Madison Industries’ boss Andrew Silvernail as chief executive in May.
Nvidia largely regained earlier losses, after underwhelming the market with its new chip, dubbed Blackwell, on Tuesday.
And finally, MicroStrategy fell over 10% following the release of details on its latest debt financing to fund further bitcoin purchases.
9:35am: US Stocks open lower as Nvidia slips
Wall Street has opened lower on Tuesday as investors take in announcements pouring out of Nvdia's AI conference.
The Dow Jones is flat at 38,786, while the Nasdaq has shed 82 points to 16,021.
The S&P 500 dropped 10 points to 5,138.
Shares in the chipmaker are down 1.5% after it recieved a lukewarm reaction to the launch of its new chip called Blackwell.
Promised to be more powerful than previous chips, Blackwell will be able to power multiple AI-based tasks.
“It is clear from the GTC keynote that despite all that has happened in the last 18 months, Nvidia believes we are still early when it comes to unlocking the potential of generative AI,” said Morgan Stanley (NYSE:MS) (Morgan Stanley (NYSE:MS)).
Super Micro Computer, a key provider of Nvidia's AI severs, traded around 11% lower following the news, but analysts remain confident pointing to its 215% surge in 2024.
8:41am: Wall Street to open lower
Wall Street is set to open lower after the major indexes closed out Monday higher, breaking three consecutive negative sessions which started in the middle of last week.
The S&P 500 is set to open around 25 points lower at 5,212 points, while the Dow Jones and Nasdaq are down in premarket trading by 81 and 139 points respectively.
David Morrison, a senior market analyst at Trade Nation, believes US stocks will keep quiet until the culmination of the Federal Reserves' meeting tomorrow.
While there is little chance of changes to interest rates, Morrisons believes the Fed's quarterly summary of economic projections and chair Jerome Powell's speech will provide insight into the thinking of the central bank.
Morrison said: "The concern is that, following last week’s disappointing inflation releases, the Fed may indicate that it is pushing out further the timing of its first rate cut since March 2020.
"This could also see it revise downward its projections for how many cuts we may see this year."