- US stocks ticked lower on Wednesday.
- Shares of Nvidia wavered after rallying in the previous session.
- Major averages ticked lower, while bond yields rose.
US stocks slumped on Wednesday, with major averages down as bond yields rose as Nvidia shares wavered and investors eyed fresh economic data.
Nvidia shares slid as much as 1.2% in early-morning trading before paring losses, trading about 0.25% higher shortly after the opening bell.
The chipmaker lost over $400 billion in a three-day stretch before recovering in Tuesday’s session.
The slide has given pause to traders that have ridden the artificial intelligence boom higher all year, and is casting doubt on how much room it left to run as the market heads into the second half of 2024.
“So far, investors are viewing NVIDIA’s sell-off as an opportunity to build up additional exposure,” Morrison said in a note on Wednesday. “Let’s see if investors remain so convinced of the chip designer’s future that they drive it up to new highs. If so, then it will restore the company’s status as the stock market’s bullish bellwether. If not, then further weakness could easily sour sentiment in general, even if there is perceived value outside the tech leaders.”
Traders are also waiting for PCE inflation on Friday. The measure of consumer prices is the Federal Reserve’s preferred inflation gauge. Dow Jones economists expect personal consumption expenditures inflation to rise 2.6% over the month of May, slightly lower than the 2.7% price increase recorded in April.
Fed commentators this week have further tempered the market’s bullishness around rate cuts this year. On Tuesday, Fed Governor Michelle Bowman noted that a rate hike was still in the cards if inflation doesn’t cooperate.
Treasury yields were up on Wednesday. The 10-year bond yield rose six basis points to 4.3%.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil ticked higher 0.11% to $80.92 a barrel. Brent crude, the international benchmark, rose 0.19% to $84.39 a barrel.
- Gold dipped 0.98% to $2,296 per ounce.
- The 10-year Treasury yield rose six basis points to 4.302%.
- Bitcoin ticked higher 0.72% to $61,544.