The NYSE ended with slightly positive numbers as US stocks traded in a volatile session from the start, when Nvidia gave up its profits limiting the broader movement in the technology sector, just days before key inflation data is known.
The index Dow Jones Industrials It closed at 39,127.80 points, rising 0.04%, the S&P500 stood at 5,477.90 points, gaining 0.16%, and the Nasdaq Composite appreciated 0.49%, reaching 17,805.16 points.
Nvidia slows profits, Amazon advances to the podium
NVIDIA Corporation gave up its early gains, falling more than 1% a day after the chipmaker rose more than 7%, although investor sentiment on the stock remains stable amid AI-infused optimism, which has caused the company to double, reducing its profits by $430 billion to date.
Amazon Inc. reached on Wednesday 2 trillion dollars market valuebecoming the fifth U.S. company to surpass that figure, as investors shift toward technology-related stocks given optimism around artificial intelligence and potential interest rate cuts.
The stock rose 3.9% and puts the e-commerce giant in the same group as technology heavyweights, Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet.
FedEx flew amid optimistic outlook
The actions of FedEx rose 15% after the delivery and logistics giant, whose results are seen as a possible marker of the state of the global economy, said it now expects to deliver full-year revenue growth in the lower sectors. It also revealed plans for a $2.5 billion share buyback in its current financial year.
Rivian Automotive rose 22% after forming a joint venture with Volkswagen, in which the German automaker will invest an initial $1 billion in electric vehicles.
Southwest Airlines and General Mills fall after orientation problem
The actions of Southwest Airlines reduced losses despite narrowing its revenue forecast for the second quarter, citing uneven travel demand. The airline said it now expects operating revenue per available seat mile in the second quarter to decline between 4% and 4.5% compared to previous guidance of a reduction of between 1.5% and 3.5%. 5%.
General Mills shares fell more than 4% after the packaged foods giant forecast annual earnings below estimates and posted a bigger-than-expected drop in quarterly sales hit by weaker demand for its snack bars. and pet food, as well as higher input costs.
Banks, attentive to stress tests
The bank stocks were also in the spotlight Wednesday ahead of the Federal Reserve’s annual stress test, which measures whether America’s largest banks can withstand an economic shock.
Energy companies dragged down by crude oil
Energy stocks were biggest losers of the day, pressured by weak oil prices after some reports showed domestic crude and fuel stocks rose unexpectedly last week, triggering concerns about demand.
EQT Corporation, Hess Corporation and Halliburton Company fell about 2% and were among the biggest losers in the energy sector.
Friday key day for inflation data
The publication of the main economic data of the week will come on Friday, when the PCE index is known, which measures changes in the price of goods and services purchased by consumers for consumption purposes, excluding food and energy.
The PCE has been the Fed’s inflation measure of choice since Alan Greenspan was chairman of the central bank in the 1990s and is based on surveys of what companies sell.
Given that the Federal Reserve projects only one interest rate cut in Decembere, all eyes will be on whether the data continues to show a moderation in price pressures.
Source: Ambito
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