US STOCKS – Wall Street advances with Nvidia and Fed meeting in focus…..
Wall Street’s three major indexes closed higher on Tuesday after shares in hotshot chipmaker Nvidia shook off early losses and investors looked ahead to the Federal Reserve’s policy meeting conclusion on Wednesday for clues on interest rate policy. Shares in Nvidia pulled out of the red to close up 1% after it revealed pricing and shipment plans for its hotly anticipated Blackwell B200 artificial intelligence chip, which it says could be 30 times faster than current chips.
At 04:15 p.m. the Dow Jones Industrial Average <.DJI> rose 320.33 points, or 0.83% , to 39,110.76, the S&P 500 <.SPX> gained 29.09 points, or 0.56%, to 5,178.51 and the Nasdaq Composite <.IXIC> gained 63.34 points, or 0.39%, to 16,166.79. The Dow Jones Industrial Average <.DJI> outpaced its Wall Street peers, supported by a 2% gains in Home Depot and advances of more than 1% in both McDonald’s and Apple Inc. In the S&P 500’s 11 major industry sectors only communications services <.SPLRCL> lost ground and that ended down just 0.2% after an almost 3% rally on Monday. Energy <.SPNY> led gains, rising 1.1% as oil prices rose.
Investors were preparing a day ahead of the Fed’s policy update, including a press conference from Chair Jerome Powell. Robust inflation data has pulled back bets for the first rate cut in June to about 59% from about 69% at the start of last week, according to the CME Fed Watch Tool.
Among other movers, crypto-exchange operator Coin base Global fell almost 4% while miner Riot Platforms fell almost 3% along with a 5% slide in bitcoin.
MicroStrategy shares fell 5.7% after the company announced it had completed a $603.75 million convertible debt offering – its second in a week – to fund bitcoin purchases. AI server maker Super Micro Computer shares tumbled just under 9% after it announced it will sell 2 million shares that could fetch about $2 billion. Spire Global shares soared 30.4% after it announced a collaboration with Nvidia for AI-driven weather prediction.
Advancing issues outnumbered decliners by a 2.25-to-1 ratio on the NYSE, which showed 286 new highs and 53 new lows. On the Nasdaq, 2,517 stocks rose and 1,768 fell as advancing issues outnumbered decliners by about a 1.42-to-1 ratio and it recorded 98 new highs and 126 new lows. The S&P 500 posted 49 new 52-week highs and one new low. On U.S. exchanges 10.74 billion shares changed hands compared with the 12.37 billion average for the last 20 sessions.
Reporting by Bansari Mayur Kamdar and Shashwat Chauhan in Bengaluru; Editing by Savio D’Souza, Maju Samuel and Aurora Ellis.
© Thomson Reuters 2024. All rights reserved.