Wall Street's three major indexes rose on Tuesday after Nvidia shares recovered from early losses and investors looked ahead to the Federal Reserve's policy meeting on Wednesday for interest rate signals. After revealing price and shipment plans for its highly anticipated Blackwell B200 artificial intelligence chip, which it claims to be 30 times faster than current chips, Nvidia (NVDA.O) shares rose 1%.
Wedbush Securities' Los Angeles managing director of stock trading, Michael James, credited Tuesday's advances to improving morale after Nvidia's shares turned around and continued economic optimism. "You're continuing to see money go into the market and not just technology," he said. "Seeing high cap tech names like Nvidia perform well from their openings helps. However, it continues the year-long positive trend."
At 04:15 p.m., the Dow Jones Industrial Average (.DJI) jumped 320.33 points, or 0.83%, to 39,110.76, the S&P 500 (.SPX) rose 29.09 points, or 0.56%, to 5,178.51, and the Nasdaq Composite (.IXIC) increased 63.34 points, or 0.39%, to 16,166.79.
Home Depot (HD.N) gained 2% and McDonald's (MCD.N) and Apple Inc (AAPL.O) gained more than 1%, helping the Dow Jones Industrial Average (.DJI) outperform Wall Street. Communications services (.SPLRCL), opens new tab, was the only S&P 500 industry sector down 0.2% after an almost 3% surge on Monday.
Oil prices increased 1.1%, lifting Energy (.SPNY). A day before the Fed's policy update, investors prepared for Chair Jerome Powell's press conference. The CME FedWatch Tool shows that robust inflation data has reduced expectations for the first rate decrease in June to 59% from 69% last week.
"There's optimism that the Fed's not going to surprise us a lot on Wednesday," said Cetera Investment Management CIO Gene Goldman. "We think three cuts are still on the table." Goldman anticipates Powell to update its inflation and economic growth estimates and remind the market that he is concerned about inflation and that policy will depend on economic data.
In other moves, crypto-exchange operator Coinbase Global (COIN.O) lost almost 4%, miner Riot Platforms (RIOT.O) fell almost 3%, and bitcoin fell 5%. After completing its second $603.75 million convertible debt offering in a week to fund bitcoin purchases, MicroStrategy (MSTR.O) shares slumped 5.7%. Following its announcement to sell 2 million shares for $2 billion, AI server company Super Micro Computer (SMCI.O) shares fell just under 9%.
After announcing an AI-driven weather prediction partnership with Nvidia, Spire Global (SPIR.N) shares rose 30.4%. The NYSE saw 286 new highs and 53 new lows, with advancing issues outnumbering decliners 2.25-to-1. The Nasdaq had 98 new highs and 126 new lows as 2,517 stocks rose and 1,768 fell. There were 49 new 52-week highs and one low for the S&P 500. U.S. exchanges traded 10.74 billion shares, down from 12.37 billion in the past 20 days.
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