Traders on the floor of the New York Stock Exchange on May 6, 2022.
Source: NYSE
The S&P 500 fell Tuesday as traders took to the latest announcements from Nvidia’s artificial intelligence conference. Wall Street also turned its eyes to Washington as the Federal Reserve kicked off its two-day policy meeting.
The broad market index dipped 0.2%, while the Nasdaq Composite lost 0.8%. The Dow Jones Industrial Average added 66 points, or about 0.2%.
Chip darling Nvidia pulled back 3.1% as investors evaluate the news from its first-ever GTC Conference. CEO Jensen Huang unveiled Nvidia’s latest AI chip, labeled Blackwell, which he touted as a significantly more powerful successor to its chips that power a multitude of AI operations. The stock had rallied more than 78% year to date heading into the event, possibly enticing investors to book some profits following the news.
Super Micro Computer, a primary vendor for building out Nvidia’s AI servers, dropped more than 11.5% on news of a share offering. Shares have ripped more than 250% higher this year on AI enthusiasm, leading the stock to be added to the S&P 500 on Monday.
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. However, fed funds futures currently forecast a 99% likelihood that the Fed will leave benchmark interest rates unchanged this week, according to the CME FedWatch Tool.
“The Fed is going to be taking a lot of the oxygen out of the room this week as they conclude their March meeting on Wednesday afternoon,” said Sam Millette, director of fixed income at Commonwealth Financial Network. “It’s going to be a really interesting meeting because markets don’t expect any interest rate changes at this meeting, and in fact, don’t have any changes priced into the next meeting either.”
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