Wall Street witnessed a mixed session on Tuesday, with the Nasdaq climbing 1.26% and the S&P 500 inching up by 0.39%, as Nvidia’s nearly 7% stock rebound buoyed the indices. This surge came as a relief after the tech giant’s market cap plummeted by over $550 billion in less than a week. Nvidia’s recovery, which snapped a three-day losing streak where it accumulated losses around 13%, propelled the S&P and Nasdaq to their highest levels on Tuesday, contrasting with the Dow Jones’ 0.76% decline to 39,112.16 points. Analysts have downplayed the recent decline, suggesting it’s a normal correction and not indicative of waning enthusiasm for artificial intelligence. Bank of America has underscored its confidence in Nvidia, adding it to its list of ‘best’ stocks, citing solid balance sheets, good governance, and above-average earnings growth. Despite the market’s mixed direction, Nvidia’s influence remains strong, with the company’s recovery leading chip stocks to regain ground and contributing to the Nasdaq’s gains. Investors remain attentive to the Federal Reserve’s stance on interest rates, with mixed signals from Fed Governor Michelle Bowman, who does not forecast a rate cut this year, despite market participants eyeing potential reductions.
Key points
- Nvidia’s stock rebounded nearly 7% after a sell-off, driving gains in the Nasdaq and S&P 500.
- The Dow Jones fell, with the broader market showing mixed results amid sectoral fluctuations.
- Bank of America reaffirmed a ‘buy’ rating on Nvidia, signaling continued market confidence in the tech giant.
