- US indexes climbed as Nvidia reversed a three-day sell-off
- Nvidia’s stock fell nearly 17%, offering long investors opportunity to buy in.
- Fed Governor Michelle Bowman noted the possibility of an interest rate hike.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
US indexes moved mostly higher Tuesday morning, with investors looking to reverse the Nvidia-led drop.
The leading semiconductor firm shed $430 billion in the course of three days, after its briefly became the world’s biggest company last week. During the sell-off that followed, the stock fell into correction territory.
With little fundamental news pushing the stock lower, analysts on Wall Street have said they see the rout from record highs as a profit-taking move by investors. Sentiment has remained largely bullish on the AI stalwart, and some have said that the drop is a buy-the-dip moment ahead of Nvidia’s next earnings report.
“[T]here’s since been a turnaround with some investors jumping in to boost long side exposure, taking advantage of the 17% sell-off between Thursday’s high and this morning’s low,” Trade Nation senior market analyst David Morrison said.
This week, investors are also keeping track of Federal Reserve commentary from a roster of officials scheduled to speak, as well as the personal consumption expenditures data scheduled for Friday.
Related stories
On Tuesday, Fed Governor Michelle Bowman highlighted that risks remain of an inflation rebound, and that interest rate cuts are not guaranteed this year.
“I remain willing to raise the target range for the federal funds rate at a future meeting should progress on inflation stall or even reverse,” she said.
Here’s where US indexes stood at the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 5,454.86, up 0.15%
- Dow Jones Industrial Average: 39,362.37, down 0.12% (-48.84 points)
- Nasdaq composite: 17,576.18, up 0.42%
Here’s what else happened today:
- A surge of market warning signals indicate the S&P 500 is about to tip into a steep correction, permabear John Hussman wrote.
- With peak oil demand still 10 years away, current pullbacks in investment by producers risk driving a shortage, Goldman Sachs says.
- Under 40% of renters can afford the average US apartment, Redfin says.
- There are seven reasons Nvidia will soar another 65% through the next couple years, according to one research firm.
- The housing-affordability crisis will keep getting worse through at least 2026, Bank of America says.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil slipped 0.39% to $80.93 a barrel. Brent crude, the international benchmark, was lower by 0.36% to $86.08 a barrel.
- Gold decreased by 0.42% to $2,323.60 per ounce.
- The 10-year Treasury yield inched up to 4.25%.
- Bitcoin was about flat at $61,105.