NVIDIA Shows Sustained AI Momentum – US Market Wrap

Tech rallied in late hours after NVIDIA’s solid results and outlook bolstered confidence in the artificial intelligence frenzy that has powered the stock rally.

The chipmaker soared in late trading after predicting another blowout sales gain for the current quarter. A $270 billion exchange-traded fund tracking the Nasdaq 100 climbed.

Second-quarter revenue will be about $28 billion, the company said in a statement Wednesday. Analysts on average had predicted $26.8 billion. Results in the fiscal first quarter, which ran through April, also beat projections.

The stock market fell during regular trading hours as the most recent Federal Reserve minutes indicated that officials are not in a hurry to lower interest rates. After fighting for direction for most of the session, the S&P 500 fell sharply as several Fed officials expressed concern about the extent to which policy is constraining the economy – but the minutes also indicated policy “was regarded as restrictive. Treasuries were under pressure, with shorter maturities underperforming.

US two-year yields climbed four basis points to 4.87%. The dollar rose, weakening the appeal of commodities priced in the currency.