US Stock Market Sees Mixed Reactions Amid Trade and Inflation Concerns
US stocks exhibited mixed performance as the S&P 500 neared its all-time high. Nvidia's positive news on H20 chip licenses buoyed tech stocks. Inflation, influenced by tariffs, slightly rose, affecting Treasury yields. The Federal Reserve's interest rate decisions loomed over the market, increasing cautious sentiment.
The US stock market experienced a day of mixed trading as major indices drifted around record levels. The S&P 500 climbed 0.1 percent, closing in on its recent all-time high, while the Dow Jones dropped 167 points. In contrast, the Nasdaq rose by 0.6 percent, buoyed by tech stocks.
Nvidia led tech gains, rising 3.7 percent, following reassurances from the US government about license approvals for its H20 chip. This development is seen as a potential positive for ongoing trade discussions between the US and China, amid rising tariff tensions.
Economic data showed inflation accelerating to 2.7 percent, spurring fluctuations in Treasury yields. Despite this, traders remain hopeful for Federal Reserve interest rate cuts later in the year, although expectations for the extent of such cuts have been tempered.
(With inputs from agencies.)
Google News