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Stock Market News: US Stocks Fall, Bond Yields Rise Ahead of New Data
- US stocks fell on Wednesday.
- Nvidia shares wavered after rising in the previous session.
- The major averages fell, while bond yields rose.
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US stocks fell on Wednesday, with the major averages falling as bond yields rose while Nvidia shares wavered and investors looked to new economic data.
Nvidia shares fell as much as 1.2% in morning trading before paring losses, trading about 0.25% higher in shortly after opening trading.
The chipmaker lost more than $400 billion over a three-day period before recovering in Tuesday’s session.
The drop has given investors who have been riding the artificial intelligence boom all year paused and are casting doubt on how much room there is left for the market to move into the second half of 2024.
“To date, investors are viewing the NVIDIA sale as an opportunity to build additional exposure,” Morrison said in a note on Wednesday. “We’ll see if investors remain so convinced of the chip designer’s future that they take it to new highs. If so, it will restore the company’s status as the stock market’s bull gauge. Otherwise, a weakness additional could easily sour sentiment overall, even if there is perceived value outside of the technology leaders.”
Traders also await PCE inflation on Friday. The consumer price measure is the Federal Reserve’s preferred gauge of inflation. Dow Jones economists expect personal consumption expenditure inflation to rise 2.6% during May, slightly lower than the 2.7% price increase recorded in April.
Fed commentators this week further tempered market optimism surrounding rate cuts this year. On Tuesday, Fed Governor Michelle Bowman noted that a rate hike was still on the cards if inflation didn’t cooperate.
Treasury yields rose Wednesday. The yield on the 10-year note rose six basis points to 4.3%.
This is where the US indices stood just after the opening bell at 9:30 am on Wednesday:
In commodities, bonds and crypto:
- West Texas Intermediate crude oil rose 0.11% to $80.92 a barrel. Brent crudethe international reference, rose 0.19%, to US$ 84.39 a barrel.
- Gold fell 0.98% to $2,296 per ounce.
- The 10-year Treasury yield rose six basis points to 4.302%.
- Bitcoin rose 0.72% to $61,544.