Market participants in New York are hesitant about their investment decisions, pending the announcement of the U.S. Federal Reserve's interest rate decision.
In today's stock market update, Baidu's AI stocks experienced a significant rally, while the Nasdaq 100 and S&P 500 saw more modest movements. Baidu's stocks soared, gaining 7.5 percent to around $133 USD. This upward trend was bolstered by a positive recommendation from Jefferies, which reiterated its buy recommendation for Baidu and significantly raised its price target to $157 dollars. However, Nvidia's shares were the clear laggard in the Dow, falling more than three percent. This decline was attributable to a report that China's cybersecurity authority CAC has instructed the country's largest technology companies to stop buying certain AI chips from Nvidia. This escalation in the dispute over high-tech chips between China and the US could have far-reaching implications for the tech sector. The Dow Jones Industrial Average rose by 0.50 percent to 45,988 points, while the S&P 500 fell by 0.17 percent to 6,595 points. The Nasdaq 100, on the other hand, lost 0.46 percent to 24,162 points. Workday's shares were the top performer in the Nasdaq 100, rising by seven percent. Evercore ISI stated that the risk-reward profile for Workday has improved after recent negative sentiment. The chart experts at Index Radar believe the record run on US exchanges could continue after the rate decision. However, Benoit Anne, a bond expert at MFS Investment Management, commented that a rate cut is practically a done deal. Fed Chair Jerome Powell, in his recent speech ahead of the next Federal Reserve meeting, communicated expectations of gradually adjusting interest rates depending on economic data. Despite expectations of a rate cut, it's important to note that after investors had already priced in a significant easing, the room for surprise is large. Data dependency and forecasts are not easily reconciled, according to Benoit Anne. In conclusion, while some stocks saw significant movements today, the overall stock market remained relatively stable. The coming days will be crucial as investors await the Federal Reserve's decision and assess its impact on the market.
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