Nvidia’s $100 Billion OpenAI Bet Lifts Stocks to Fresh Records Amid Ongoing Fed Debate – US Market Wrap

Wall Street traders defied calls for a breather after a $15 trillion stock rally from April lows, with Nvidia boosting optimism about artificial intelligence by promising to invest up to $100 billion in OpenAI.

The S&P 500 saw gains led by technology, with the US equity benchmark setting a record for the 28th time this year. The world’s largest chipmaker gained approximately 4%. Its investment is intended to assist OpenAI in developing data centres with a power capacity of 10 gigawatts, using Nvidia’s advanced AI chips to train and deploy OpenAI models.

Bond market activity was relatively muted, with US yields slightly higher ahead of this week’s key inflation gauge and a trio of Treasury auctions. The dollar’s three-day rally has come to an end. The crypto world was hit. Gold reached a record high.

Several Fed officials are scheduled to speak at public events, including Chair Powell on Tuesday. In his first policy speech since joining the Fed, Governor Miran presented his case for aggressively lowering interest rates.

Meanwhile, Musalem of the Federal Reserve stated that he sees little room for cuts in the face of high inflation. His Cleveland counterpart, Hammack, said officials should exercise caution to avoid overheating the economy.