Market Rally Amid Nvidia's China Concerns and Interest Rate Speculations
U.S. stock indexes showed slight gains despite Nvidia's dip due to China concerns. The dollar fell against major currencies as traders expected interest rate cuts. Nvidia's strong forecast reassured investors, countering fears of a slowdown. Economic data showed robust U.S. growth, lifting the market sentiment.
Major U.S. stock indexes posted modest gains on Thursday, even as Nvidia shares slipped amid uncertainties over its business in China. The dollar weakened against the euro and yen, with traders anticipating imminent U.S. interest rate cuts. Nvidia's stock fell 0.9% despite a strong revenue forecast.
The Dow, S&P 500, and Nasdaq all registered gains, with the semiconductor index up by 0.6%. Nvidia's results and guidance alleviated investor concerns, according to Peter Tuz from Chase Investment Counsel. Nvidia CEO Jensen Huang dismissed fears of a slowdown in AI chip demand, citing growth opportunities.
Additionally, positive economic data showed stronger-than-expected U.S. growth in the second quarter, boosting market sentiment. Interest rate discussions ahead of the Federal Reserve's policy meeting also held attention, with a potential rate cut in September being closely watched.
(With inputs from agencies.)
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