Traders on the floor of the New York Stock Exchange experienced a mixed day on Wednesday as the S&P 500 pulled back from a record high, driven by a cooling off of Nvidia’s red-hot rally in 2024.
The broad market index dipped 0.1%, while the Nasdaq Composite slipped 0.5%. However, the Dow Jones Industrial Average managed to climb 145 points, or 0.3%. Nvidia shares were down more than 3%, while Meta and Apple also saw slight declines. The tech sector took a hit, with the S&P 500 tech sector dropping more than 1% and the VanEck Semiconductor ETF sliding 2.4%.
Despite the pullback, sentiment on AI and data centers remains bullish, with anticipation building for the Nvidia GTC conference. Adam Crisafulli, founder and president of Vital Knowledge, noted that investors are booking profits in tech after Tuesday’s outperformance.
The positive momentum from Tuesday’s session, where the S&P 500 and Nasdaq both saw gains of over 1%, was driven by February U.S. inflation data coming in line with expectations. However, concerns remain about underlying data and the Federal Reserve’s next moves on monetary policy.
Ayako Yoshioka, senior portfolio manager at Wealth Enhancement Group, highlighted the importance of the upcoming Fed meeting on March 19, where Fed Chair Jerome Powell is expected to maintain a data-dependent outlook and a more neutral tone. Yoshioka pointed out that while the headline CPI number was a relief, there are still concerns about increasing services costs.
In other news, Dollar Tree saw a 13% drop after releasing its fourth-quarter results. Investors will be keeping a close eye on Thursday’s producer price index for more inflation data.
Overall, Wall Street remains cautious as it navigates through market fluctuations and awaits further economic indicators to guide investment decisions.
