US Stocks Plummet as Fed Chair Powell Cautions on Rate Cut
US stocks experienced a sharp decline on Wednesday, with the Dow Jones, S&P 500, and Nasdaq indices all suffering losses, as Federal Reserve chairperson Jerome Powell expressed caution on a potential rate cut in December. Powell's comments at a press conference, following the Fed's announcement of a 25 bps rate cut, cast a shadow over the economic outlook. The decline was not uniform across all indices, with Nvidia shares rising 2.2% to surpass the $500 billion milestone in AI chip orders and plans to build seven supercomputers for the US government.
Key Takeaways:
- US stocks fell sharply on Wednesday, with the Dow Jones declining 170.61 points (0.36%), the S&P 500 falling 25.10 points (0.36%), and the Nasdaq slipping 6.89 points (0.03%).
- Federal Reserve chairperson Jerome Powell cautioned that a December rate cut is not a foregone conclusion, citing the economic outlook.
- Nvidia shares surged 2.2% to surpass the milestone of $500 billion in AI chip orders and plans to build seven supercomputers for the US government.
- Apple and Microsoft each crossed the $4 trillion market cap mark on Tuesday amid growing optimism over AI partnerships.
- Investors expect tech companies to continue beating earnings estimates, with the AI trade remaining a key driver of the record-setting US stock market rally.
- Upcoming results from Meta, Microsoft, and Alphabet will determine the fate of the AI trade and its impact on the US stock market.
Statistics:
- Dow Jones: -170.61 points (0.36%) to 47,473.39
- S&P 500: -25.10 points (0.36%) to 6,851.33
- Nasdaq: -6.89 points (0.03%) to 23,764.00
- Nvidia's AI chip orders: $500 billion
- Nvidia's stock price increase this year: 50%
- Apple's market cap: $4 trillion
- Microsoft's market cap: $4 trillion
- Time since Nvidia's stock price surged 2.2%: 1 day
- Upcoming earnings announcements: Meta, Microsoft, Alphabet
Sources:
- Times Content (original publication date not specified)