Wall Street fell, dragged down by bad inflation data in the US

Wall Street fell, dragged down by bad inflation data in the US

Shares of the leader in artificial intelligence chips, Nvidia, surpassed the $1,000 barrier for the first time. But it was not enough to boost the NYSE market, as economic data showed that price pressures remain in the United States.


The main Wall Street indices closed lower this Thursday, even when a strong revenue forecast for Nvidia caused its shares to risebut the prediction was overshadowed by economic data which showed that the inflation It was still a concern. which could delay any rate cut from the Federal Reserve.

In that context, the S&P 500 low 38.44 points, or 0.7%, to 5,268.57 units; Meanwhile he Nasdaq Composite lost 65.28 points, or 0.4%, to 16,736.27 units; and the Dow Jones Industrial Average fell 602.47 points, or 1.5%, to 39,068.57 units.

Nvidia shares surpassed the $1,000 barrier

The shares of the leader of artificial intelligence chips, Nvidiathey overcame for the first time the barrier of u$s1,000when climbing a 9.3% and is on its way to adding some 220 billion Dollars market valueif profits are maintained.

The firm also announced a stock splitafter climbing more than 100% this year and a triple increase in 2023, which made Nvidia in the third most valuable American stock.

Economic data put pressure on Wall Street

However, the stocks lost ground after economic data show that price pressures in the United States increased in May, even as business activity accelerated and Lower weekly unemployment claims indicated the labor market remains firm.

“It may speak to the fact that people are now positioned for disappointing growth data, slowing inflation data, rate cuts, and this morning… it caught people off guard,” he said. Brian Nicksenior investment strategist at the Macro Institute in New York.

The returns of the Treasury bond rose after the data, which weighed on small cap firms, as the Russel 2000 experienced its largest daily percentage drop in almost a month.

The increases of Nvidia boosted the technology index of the S&P 500which was the only one who advanced between the 11 main sectors of the S&P. But despite the gains, the PHLX semiconductor index down.

Stocks’ rally to record levels this month was driven in part by optimism about the Artificial intelligencea strong earnings season and renewed hopes that the Fed cuts rates this year.

Towards inside the Dow Jones Industrial Averageall stocks fall led by Boeingwhich collapses 7.3%after a US regulator said that the company faces a “long way” to solve security problems.

Source: Ambito

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