US stocks rise ahead of Nvidia’s crucial results

Wall Street’s key indexes rose on Wednesday due to Nvidia stock’s surge in shares, driven by expectations of a positive future outlook from the chip designer. Nvidia’s sales target exceeded Wall Street projections, leading to a record high for the chip designer’s shares.

Analysts worry about a bigger selloff if the company doesn’t meet investors’ expectations. Nvidia’s stock increased by 2.1%. The S&P 500’s 15% increase so far this year has been driven by the company’s blown-out projection from the previous quarter.

Shares of other significant growth companies recovered from dips in August, with Netflix increasing 5.4%, Alphabet and Meta Platforms increasing 2.8% and 3.1%, respectively. The S&P 500 communication services index also rose by 2.3%. Equities gained as the 10-year Treasury note yield dropped from 16-year highs, indicating global disinflation.

The Fed’s comments will provide more insight into the central bank’s interest rate path. Traders’ bet of a rate hike pause by the Fed next month is 88.5%. US stocks are expected to see only marginal gains between now and year-end, with the S&P 500 forecasting a year-end of 4,496, 2.2% above Monday’s close.