Traders work on the floor of the New York Stock Exchange on Sept. 9, 2022.
Brendan Mcdermid | Reuters
Stocks rose Tuesday as the Federal Reserve kicked off its two-day policy meeting. Traders also kept an eye on Nvidia following key announcements from the tech giant.
The Dow Jones Industrial Average gained 320.33 points, or 0.83%, to close at 39,110.76. The 30-stock benchmark registered its best day since Feb. 22. The S&P 500 gained 0.56% to close at 5,178.51 for a fresh record. Meanwhile, the Nasdaq Composite advanced 0.39% to end at 16,166.79.
The central bank is expected to keep rates unchanged Wednesday. However, a recent slate of worrying inflation reports has investors concerned that the central bank could signal interest rates will remain higher for longer than expected.
Treasury yields dipped broadly, boosting stocks. The rate on the benchmark 10-year Treasury was down more than 4 basis points at 4.295%.
Chip darling Nvidia climbed roughly 1.1% — recovering from an earlier loss — as investors evaluated the news from its first-ever GTC Conference. CEO Jensen Huang unveiled Nvidia’s latest artificial intelligence chip, labeled Blackwell, which he touted as a significantly more powerful successor to its chips that power a multitude of AI operations.
Super Micro Computer, a primary vendor for building out Nvidia’s AI servers, dropped about 9% on news of a share offering. Shares have ripped 220% higher this year on AI enthusiasm, leading the stock to be added to the S&P 500 on Monday. In another sign that the recent bull run could be slowing down, bitcoin proxy MicroStrategy dropped 5.7%. The stock has more than doubled in 2024 as bitcoin surged to record highs.
According to Sam Stovall, chief investment strategist at CFRA Research, a “healthy” market digestion after the recent rally will either happen later than investors expect or be deeper than they anticipate.
“The AI revolution has a long way to go, and therefore whatever decline we’re seeing now is…
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