Breaking News: S&P 500 Slips as Nvidia's Rebound Fades, Tech Stocks in Focus Amid Jumbo Fed Rate Cut Bets
In a surprising turn of events, the S&P 500 slipped on Wednesday as Nvidia's rebound faded, putting a lid on tech stocks despite a significant drop in Treasury yields amidst growing expectations of a substantial Fed rate cut later this month.
At 4:00 p.m. EST (2000 GMT), the S&P 500 gained 38 points, or 0.1%, while the Dow Jones Industrial Average fell 0.2% and the Nasdaq fell 0.3%.
The main Wall Street indices experienced a sharp selloff on Tuesday following disappointing manufacturing activity data, raising concerns about the economic outlook.
Treasury yields took a hit due to worries about the labor market, with the two-year Treasury falling more than 12 basis points to 3.766% after job openings fell more than expected.
Market participants are eagerly awaiting the upcoming August U.S. jobs report, which is expected to have a significant impact on the Federal Reserve's decision regarding a potential rate cut on September 18.
In other news, Nvidia's shares closed 1% lower after a rebound during the day lost momentum. The company is currently under scrutiny from the US Department of Justice regarding its dominance in the artificial intelligence chip market.
Corporate earnings also made headlines, with Zscaler slumping 18% after weak guidance, Asana falling 6% due to a challenging quarter, and Pagerduty closing 1% lower after reducing its revenue forecast. On a positive note, Clover Health Investments Corp shares jumped 14% and Gitlab stock increased 21% following strong results and an optimistic forecast.
In conclusion, the current market conditions are volatile, with tech stocks and Treasury yields under pressure. Investors should stay informed and cautious as economic data and Fed decisions continue to impact financial markets worldwide.