US stocks edged higher on Wednesday, settling at record highs as interest focused on more upcoming signs on the US Federal Reserve and interest rates.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was up 35 points, or 0.1%, the S&P 500 climbed 7 points, or 0.1%, while the NASDAQ Composite gained 20 points, or 0.1 %.
Focus on Powell’s speech, PCE data
The S&P 500 and DJIA hit record highs on Tuesday, continuing the optimism created by last week’s dramatic rate cut by the Fed.
But investors are pausing for breath on Wednesday, particularly after a Conference Board report showing US consumer confidence unexpectedly fell in September amid concerns about the health of the labor market.
Building permits also rose less than expected in August, data showed on Wednesday, also raising concerns about the country’s housing market.
Several Fed officials are due to speak in the coming days – most notably Chairman Jerome Powell on Thursday – and are likely to offer more clues about the bank’s rate cut plans.
Federal Reserve Governor Adriana Kugler will be in the spotlight on Wednesday.
The Fed cut interest rates by 50 basis points last week and announced the start of an easing cycle, which analysts say could cut rates by a total of 125 basis points this year.
PCE data – the Fed’s preferred measure of inflation – is due on Friday and is likely to weigh on the central bank’s interest rate plans.
Nvidia retreats after strong session
Shares of artificial intelligence major Nvidia ( NASDAQ:NVDA ) rose 1.1%, extending Tuesday’s positive session after reports that CEO Jensen Huang is done selling Nvidia stock after shedding more than $700 million worth of stock. .dollars as part of a trading plan.
Huang’s share sales had shaken some confidence in the company, especially after its quarterly results fell short of some high expectations and it saw delays in advanced artificial intelligence chips.
Crude returns its profits
Crude prices edged lower on Wednesday as traders reassessed the potential impact of fresh monetary stimulus from top importer China.
By 09:35 GMT, Brent was down 0.9% at $73.83 a barrel, while U.S. crude futures (WTI) were trading 1.1% lower at $70.78 a barrel. .
Both benchmarks rose just under 2 percent on Tuesday after China rolled out its latest barrage of stimulus measures. But traders noted that more help may be needed to bolster the economic outlook of the world’s biggest crude importer, according to Reuters.
A decline in US crude oil inventories provided some support to the market as data from the American Petroleum Institute showed on Tuesday that crude inventories fell by 4.34 million barrels last week. Official numbers from the Energy Information Administration are expected later in the session.
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Reference;
Nurse, P. (2024) US stocks edge higher; Fed speakers in spotlight By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/us-stock-futures-steady-after-nvidia-pushes-wall-st-to-record-highs-3631015 (Accessed: 25 September 2024).
