If a repeat of Tuesday’s chip-fueled rally was expected, he had other plans on Wednesday.
Major indexes are moving in different directions Wednesday morning as rising oil prices and anticipation of key earnings reports create a divided market. He Dow Jones Industrial Average (DJINDICES: ^DJI) is up 0.2%, gaining support from traditional blue-chip stocks. He S&P 500 (SNPINDEX: ^GSPC) is barely positive at 0.1%, caught between the strength of the industrial sector and the weakness of technology. He Nasdaq Composite (NASDAQINDEX: ^IXIC) is down 0.1%. The tech index is taking a breather after the proverbial Silicon Valley dominated the market yesterday.
Did Nvidia miss out in 2009? This rare signal flashes again. In 2009, a “double down” signal appeared for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company that is 1/100th the size of Nvidia. Continue “
The morning started hard. All three indexes opened lower, with the Nasdaq briefly falling 0.6% before lunch. But the Dow Jones found its footing early, rising as much as 0.5% around 10:00 a.m. ET. The Nasdaq came out of the depths and briefly turned positive before settling back into negative territory. At the time of writing, there is a narrow 0.3% spread between the Dow’s gains and the Nasdaq’s decline.
^DJI data by YCharts
Tensions in the Middle East drive up energy prices
Rising oil prices and high interest rates are creating headwinds for growth stocks today, particularly in the technology sector. Brent crude is hovering around $94 a barrel, up about 4%, after President Trump threatened to attack Iranian infrastructure every time Iran attacks a ship in the Strait of Hormuz.
The energy shock is bringing back inflation concerns and keeping the 10-year Treasury yield stuck at 4.6%, which is exactly what growth stocks don’t need right now. Many technology companies would love to have easy access to low-interest loans and other funds right now so they can invest in AI computing infrastructure. That’s just not on the menu.
But some stocks are bucking the downtrend. super microcomputer (NASDAQ: SMCI) is having a fantastic day, rising 17.5% after raising guidance due to record orders for AI servers. AT&T (NYSE: T) gained 3.6% after beating quarterly earnings estimates and announcing an accelerated $10 billion share buyback program by 2026.
NVIDIA (NASDAQ: NVDA) is up 2.6%, single-handedly boosting both the S&P 500 and Nasdaq. Chipmaking partner Wistron is opening a new assembly facility in Texas, boosting Nvidia’s domestic manufacturing capacity. On the other hand, microsoft (NASDAQ: MSFT) is a drag on all three indices with a price drop of 2.1%. Macroeconomic concerns weigh on the software titan today.
