Stock Rally Sustained by Nvidia – US Market Wrap
US stocks held their gains, buoyed by a surge in Nvidia shares, as traders largely ignored a bleak consumer confidence report.
The S&P 500 Index rose 0.3%, marking its 41st record close; the blue-chip Dow Jones Industrial Average gained 0.2%, while the tech-heavy Nasdaq 100 increased 0.5%. A massive stimulus package from China helped to shore up stocks with economic ties to the country.
The benchmarks initially fell after a Tuesday reading on the Conference Board’s gauge of consumer sentiment showed the largest drop since August 2021, only to reverse course after a report that Nvidia’s CEO had stopped selling shares. That boosted the stock by about 4% and pushed the S&P 500 higher.
The consumer confidence report raised concerns about a slowdown in the labor market, and manufacturing data was also weaker than expected.
Following the data, swaps traders increased their wagers to more than three-quarters of a point of policy easing by year-end, implying at least one more major cut is on the way.
