Interest Rate Uncertainty Weighs on Markets Amidst AI Surge
The Dow fell and the S&P 500 was flat as the Federal Reserve cut interest rates but suggested further cuts are not guaranteed. Nvidia led Nasdaq to a record closing high. Earnings reports were generally positive, with major contributions from Caterpillar. Post-market, Alphabet up, Meta and Microsoft down.
In a mixed performance Wednesday, the Dow closed lower, and the S&P 500 ended flat following a Federal Reserve interest rate cut. However, Federal Reserve Chair Jerome Powell's remarks tempered market expectations for further cuts, overshadowing Nvidia's historic milestone on the Nasdaq.
Nvidia emerged as the first AI chipmaker to achieve a $5 trillion market value, propelling the Nasdaq to a record. Meanwhile, Powell indicated that another rate cut in December remains uncertain, diverting attention from strong corporate earnings, including a standout performance from Caterpillar.
Major earnings surpassed forecasts, with 84.2% of S&P 500 companies surpassing Wall Street expectations. However, post-market trade reactions saw mixed results as Meta Platforms, Microsoft, and Alphabet released quarterly reports, highlighting investor concerns over AI-related costs.
ALSO READ
-
AI Chip Trade Tensions: U.S. Debates Nvidia's Exports to China
-
Fed’s Rate Decision Clouds Market Rally: Nvidia Shines Amidst Uncertainty
-
U.S. AI Advantage at Risk Amid Potential Nvidia Chip Deal with China
-
Fed's Rate Cut Leaves Wall Street Unsettled: Nasdaq Surges on Nvidia's Milestone
-
Federal Reserve Cuts Interest Rates Amid Division and Economic Uncertainty
Google News