US Markets
Tuesday, March 19th, 2024 8:44 pm EDT
Key Points
- Stock Market Performance: The stock market saw a rise on Tuesday as the Federal Reserve initiated its two-day policy meeting. The Dow Jones Industrial Average gained 320.33 points, or 0.83%, closing at 39,110.76, marking its best day since February 22. Similarly, the S&P 500 gained 0.56% to close at 5,178.51, reaching a fresh record, while the Nasdaq Composite advanced 0.39% to end at 16,166.79.
- Federal Reserve Meeting and Treasury Yields: Investors anticipated the Fed’s decision on interest rates amidst concerns about inflation. Although the central bank is expected to keep rates unchanged, worries persist that it may signal higher rates for a longer duration. Consequently, treasury yields dipped broadly, with the rate on the benchmark 10-year Treasury down more than 4 basis points at 4.295%, thereby boosting stocks.
- Nvidia and Market Sentiment: Nvidia, a key player in the tech industry, saw its stock climb roughly 1.1% as it recovered from an earlier loss. This uptick followed announcements made at its first-ever GTC Conference, where CEO Jensen Huang unveiled Nvidia’s latest artificial intelligence chip, Blackwell, emphasizing its significant advancements in AI operations. However, Super Micro Computer, a primary vendor for Nvidia’s AI servers, experienced a setback, dropping about 9% on news of a share offering. Additionally, MicroStrategy, a proxy for bitcoin, declined by 5.7%, indicating a potential slowdown in the recent bull run. According to Sam Stovall, chief investment strategist at CFRA Research, this market digestion after a rally may either occur later or be deeper than expected, as traders react to known and unknown factors.
On Tuesday, the stock market saw an uptick as the Federal Reserve commenced its two-day policy meeting, with particular focus on Nvidia following significant announcements from the tech giant. The Dow Jones Industrial Average surged by 320.33 points, or 0.83%, reaching 39,110.76, marking its best day since February 22. Simultaneously, the S&P 500 hit a fresh record, gaining 0.56% to close at 5,178.51, while the Nasdaq Composite advanced 0.39% to end at 16,166.79. As investors anticipated the Fed’s decision on interest rates, treasury yields declined, contributing to the rise in stocks. Nvidia experienced a modest climb of approximately 1.1% following the unveiling of its latest artificial intelligence chip, Blackwell, at the GTC Conference. However, Super Micro Computer, a key vendor for Nvidia’s AI servers, faced a setback, dropping about 9% due to news of a share offering. The recent bull run appears to be slowing down, as indicated by the 5.7% drop in MicroStrategy, a proxy for bitcoin. Despite the downturn, optimism remains regarding the ongoing AI revolution, suggesting that any decline in the market may simply be a minor adjustment rather than a significant downturn. Meanwhile, Coinbase insiders have sold approximately $359 million in company shares in the first quarter alone, reflecting growing confidence in the crypto exchange amidst a surge in investors’ appetite for cryptocurrencies. As the Fed meeting unfolds, Wall Street offers derivative plays for investors interested in capitalizing on Nvidia’s AI advancements, while a major bond fund, the iShares 20+ Year Treasury Bond ETF, experiences a historic slide ahead of the meeting, marking its longest losing streak since its inception in 2002.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/18/stock-market-today-live-updates.html
