Nvidia stocks are buoyant
Dow Jones closes in positive territory
08/23/2023 10:53 p.m
Investors on Wall Street are grabbing tech stocks in anticipation of brilliant numbers from chip developer Nvidia. The hope of an end to the Fed’s interest rate policy is also creating a positive atmosphere.
The US stock exchanges more than made up for the losses of the previous day. Support came from weaker than expected purchasing managers’ data from S&P Global for manufacturing and services in August. After numerous robust economic data, this raises the hope among some investors that the US Federal Reserve might not be able to take any further interest rate hikes because of the risk of a recession that cannot be ruled out.
The Dow Jones Industrial ultimately increased by 0.54 percent to 34,472.98 points. For the broad market S&P 500 it went up 1.10 percent to 4,436 points during the Nasdaq 100 rose by 1.60 percent to 15,148.06 points. In the selection index, which is predominantly stocked with technology stocks, the Nvidia stock as one of the best values, by 3.2 percent. The semiconductor group’s report, which is due after the market close, was eagerly awaited because the company is currently benefiting strongly from the boom in artificial intelligence (AI). In May, a strong outlook from Nvidia caused euphoria and since then has driven the stock to record highs with minor dents. It was only on Tuesday that the paper had risen to an all-time high before profit-taking began.
The central bank meeting in Jackson Hole (Wyoming), which starts on Thursday, is already casting a shadow. Fed President Jerome Powell will also address the three-day conference.
Experts are hoping for clues as to whether the Fed will raise interest rates again in the fight against inflation. “In any case, the expectation that the Fed and other central banks will suddenly switch to a dovish course is not realistic,” warns market analyst Craig Erlam from the trading house Oanda. There may be signs that the tightening cycle is coming to an end, he wrote, and that would already be “a big shift in communications.” On the other hand, hopes of interest rate cuts in the foreseeable future are “almost certain to be dismissed”.