US stock markets experienced a decline on Wednesday, as bond yields rose and Nvidia shares struggled following recent gains. The chipmaker’s stock initially dropped by 1.2% before slightly recovering to trade 0.25% higher after the opening bell.
Investors have been closely monitoring Nvidia’s performance after a significant loss of over $400 billion in a three-day period. This fluctuation has caused uncertainty among traders who have been benefiting from the artificial intelligence sector’s growth throughout the year.
Market experts are now questioning how much potential growth is left for Nvidia as we head into the second half of 2024. Despite the recent slide, some investors view this as an opportunity to increase their exposure to the company, while others are cautious about the future of the stock.
The focus now turns to the upcoming PCE inflation data on Friday, which is the Federal Reserve’s preferred measure of consumer prices. Economists are expecting a slight decrease in inflation from April to May, with personal consumption expenditures predicted to rise by 2.6%.
Additionally, commentary from Fed officials this week has tempered expectations around potential rate cuts, with Fed Governor Michelle Bowman indicating that a rate hike could still be on the table if inflation remains a concern.
Treasury yields saw an increase on Wednesday, with the 10-year bond yield rising by six basis points to reach 4.3%. This rise in bond yields, coupled with Nvidia’s performance, has created a sense of uncertainty in the market, prompting investors to reassess their strategies moving forward.
Frequently Asked Questions (FAQs) Related to the Above News
Why did Nvidia shares waver on Wednesday?
Nvidia shares struggled on Wednesday due to a combination of rising bond yields and a general slump in US stock markets.
What caused uncertainty among investors regarding Nvidia's performance?
Nvidia's significant loss of over $400 billion in a three-day period has created uncertainty among investors who have been benefiting from the growth in the artificial intelligence sector.
What economic data are investors awaiting?
Investors are eagerly awaiting the upcoming PCE inflation data on Friday, which is the Federal Reserve's preferred measure of consumer prices.
What are economists predicting for the PCE inflation data?
Economists are expecting a slight decrease in inflation from April to May, with personal consumption expenditures predicted to rise by 2.6%.
How have Treasury yields been affected?
Treasury yields saw an increase on Wednesday, with the 10-year bond yield rising by six basis points to reach 4.3%. This rise in bond yields has added to the sense of uncertainty in the market.
What has Fed Governor Michelle Bowman indicated about potential rate cuts?
Fed Governor Michelle Bowman has indicated that a rate hike could still be on the table if inflation remains a concern, tempering expectations around potential rate cuts.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
