Stock market today: Stocks little changed as Nvidia, AI rally shows signs of fatigue
How did the S&P 500 perform compared to the Nasdaq on Friday?
The S&P 500 remained unchanged on Friday, while the Nasdaq Composite gained 0.2%. The S&P 500 briefly crossed 5,500 for the first time on Thursday but dipped later in the day, while the Nasdaq saw its seven-day record closing streak end with a loss in the prior session.
How likely are rate cuts in September according to CME FedWatch?
According to the CME FedWatch tool, the likelihood of a rate cut in September is around 73%, up from 65% earlier. This increase comes after a U.S. Commerce Department report showed inflation making progress towards the Fed's 2% goal5. Traders in the fed funds futures market also pushed up the chances of a September rate cut to 62.8% from 46.8% a day earlier.
Why did Nvidia's stock decline by more than 1% on Friday?
Nvidia's stock declined by more than 1% on Friday due to a broader market dip and profit-taking by investors after the recent AI-fueled rally. The tech-heavy Nasdaq Composite also gained only 0.2%, and other chip stocks declined alongside Nvidia. Investors are assessing the broader health of the US economy and the path for interest rates.