Nvidia Navigates Turbulent Waters Amid U.S.-China Trade Concerns
U.S. stock indexes rose slightly on Thursday despite Nvidia's shares slipping amid U.S.-China trade uncertainty. Nvidia's CEO remains optimistic about future AI chip opportunities. Global investors anticipate potential U.S. interest rate cuts as economic data shows growth. Legal developments involving Federal Reserve Governor Cook add to the financial landscape.
On Thursday, major U.S. stock indexes saw a modest increase despite Nvidia's share price dip due to lingering questions over the company's business dealings in China. Meanwhile, the dollar weakened against the euro and yen with traders expecting imminent U.S. interest rate cuts.
Although Nvidia's shares declined by approximately 1.1%, the chip designer's revenue forecast exceeded Wall Street expectations. Nvidia CEO Jensen Huang reassured investors about the company's growth prospects in AI chips, suggesting an expansion in opportunities over the next five years.
Economic indicators showed U.S. growth in the second quarter, partly fueled by business investment in AI, contributing to positive market sentiment. Investors are closely watching developments related to interest rate cuts ahead of the Federal Reserve's policy meeting, as well as legal moves by Federal Reserve Governor Lisa Cook challenging presidential powers over her position.
(With inputs from agencies.)
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