Nvidia Nears $5 Trillion Valuation Amid AI Boom And Fed Rate Cuts
Wall Street anticipates a higher opening as Nvidia approaches a $5 trillion valuation, driven by significant AI investments. Expectations of Federal Reserve rate cuts and Big Tech earnings are contributing to market optimism, with the Nasdaq hitting record highs. Meanwhile, Boeing and Mondelez face financial challenges.
Wall Street is set for a positive start on Wednesday, buoyed by Nvidia's progress towards a $5 trillion market valuation. The company's stock climbed 3.3% in premarket trading following CEO Jensen Huang's announcement of $500 billion in AI chip orders and plans for U.S. government supercomputers.
The bullish sentiment is also bolstered by expectations of a Federal Reserve rate cut and strong Big Tech earnings. Nvidia's formidable standing in the AI market has made it a key contributor to U.S. equities' upward trajectory in 2025. Investors remain captivated by AI investment trends and corporate spending.
The broader market is reflecting these positive vibes, with Dow, S&P 500, and Nasdaq futures showing gains. As Big Tech prepares to release earnings, special attention is on AI spending's sustainability. However, not all sectors are thriving; Boeing and Mondelez have announced significant financial setbacks affecting their stocks.
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