Home / Business and Economy / US Stocks Mixed as Dovish Data Fuels Fed Rate Cut Hopes
US Stocks Mixed as Dovish Data Fuels Fed Rate Cut Hopes
27 Nov
Summary
- Nvidia shares fell over 5% amid reports of Meta's interest in Google's AI chips.
- Weaker-than-expected economic data boosted the possibility of a Fed rate cut.
- US consumer confidence dropped to a seven-month low in November.
- Retail sales growth slowed in September, further supporting a dovish Fed stance.
US stock markets exhibited mixed performance today, with major indexes fluctuating as investors digested recent economic data. The S&P 500 edged higher, while the Dow Jones Industrial Average saw a notable increase, and the Nasdaq Composite trended downwards. This volatility follows a strong rally observed earlier in the week.
Key to the day's movement was a significant drop in Nvidia's stock, which fell over five percent. This downturn was reportedly triggered by news that Meta Platforms is considering a multi-billion dollar investment in Google's AI chips. Such a deal could signal progress for Google in competing with Nvidia's dominant position in AI hardware.
Further influencing market sentiment were several softer-than-expected US economic reports. September retail sales and core producer price index figures came in below forecasts. Additionally, private payroll data showed a decline, and consumer confidence plunged to a seven-month low in November. These indicators collectively reinforced expectations that the Federal Reserve may cut interest rates at its upcoming FOMC meeting.
