Investors expect the Fed to proceed with a 25 basis point interest rate cut.
US stocks moved higher on Wednesday, hitting new records, with technology leading the gains, as investors prepare for the Federal Reserve's interest rate decision.
The Nasdaq Composite rose by 0.6% to 23,962 units, the S&P 500 gained 0.3% to 6,911 units, while the Dow Jones Industrial gained 281 points or 0.6% to 47,945 units. All three major US stock indices recorded new historical intraday highs.
Nvidia makes history
Nvidia shares soared over 4%, raising the company's market capitalization above $5 trillion — the first time in US history that a company has reached such a valuation level. The rise is due to the continued strong demand for AI and data center technologies.
Wall Street yesterday recorded a second consecutive session with record prices. The S&P 500 rose by 0.2% and surpassed 6,900 units intraday for the first time, approaching the psychological limit of 7,000. The Dow Jones added 162 points (+0.3%), while the Nasdaq Composite outperformed with a gain of 0.8%.
The Fed at the center of developments
Investors expect the Fed to proceed with an interest rate cut of 25 basis points at the end of today's session. However, the focus is on the tone that Jerome Powell will adopt in the press conference. The market is pricing in another cut in December.
Concurrently, the market enters a week of high expectations for the results of the tech giants. Alphabet, Meta Platforms, and Microsoft will publish results after the close on Wednesday, while Apple and Amazon will follow on Thursday. Any negative surprises could affect the broader investment sentiment.
US–China de-escalation supports sentiment
Investors are also monitoring diplomatic developments, as Donald Trump is expected to meet with Xi Jinping in South Korea. The recent de-escalation of trade tensions has served as a support for the market.
As Thierry Wizman (Macquarie Group) commented, the market views Trump's "rapprochement" with China and Japan positively, estimating that it reduces the risk of new tariffs and thus inflationary pressures — a development linked to a potentially more "dovish" stance from the Fed.
Risks in the background, but optimism prevails.
Although the market is moving at historical highs and valuations remain particularly high, the landscape is not without risks, such as the continuing partial federal government shutdown.
However, many analysts urge investors not to bet against the market's momentum. Lauren Goodwin (New York Life Investments) stressed to CNBC: "I believe the excitement will continue through the week and we are on a safe trajectory until the end of the year."
www.bankingnews.gr
The Nasdaq Composite rose by 0.6% to 23,962 units, the S&P 500 gained 0.3% to 6,911 units, while the Dow Jones Industrial gained 281 points or 0.6% to 47,945 units. All three major US stock indices recorded new historical intraday highs.
Nvidia makes history
Nvidia shares soared over 4%, raising the company's market capitalization above $5 trillion — the first time in US history that a company has reached such a valuation level. The rise is due to the continued strong demand for AI and data center technologies.
Wall Street yesterday recorded a second consecutive session with record prices. The S&P 500 rose by 0.2% and surpassed 6,900 units intraday for the first time, approaching the psychological limit of 7,000. The Dow Jones added 162 points (+0.3%), while the Nasdaq Composite outperformed with a gain of 0.8%.
The Fed at the center of developments
Investors expect the Fed to proceed with an interest rate cut of 25 basis points at the end of today's session. However, the focus is on the tone that Jerome Powell will adopt in the press conference. The market is pricing in another cut in December.
Concurrently, the market enters a week of high expectations for the results of the tech giants. Alphabet, Meta Platforms, and Microsoft will publish results after the close on Wednesday, while Apple and Amazon will follow on Thursday. Any negative surprises could affect the broader investment sentiment.
US–China de-escalation supports sentiment
Investors are also monitoring diplomatic developments, as Donald Trump is expected to meet with Xi Jinping in South Korea. The recent de-escalation of trade tensions has served as a support for the market.
As Thierry Wizman (Macquarie Group) commented, the market views Trump's "rapprochement" with China and Japan positively, estimating that it reduces the risk of new tariffs and thus inflationary pressures — a development linked to a potentially more "dovish" stance from the Fed.
Risks in the background, but optimism prevails.
Although the market is moving at historical highs and valuations remain particularly high, the landscape is not without risks, such as the continuing partial federal government shutdown.
However, many analysts urge investors not to bet against the market's momentum. Lauren Goodwin (New York Life Investments) stressed to CNBC: "I believe the excitement will continue through the week and we are on a safe trajectory until the end of the year."
www.bankingnews.gr
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