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Wall Street traded higher this Thursday morning, boosted by Nvidia’s surge.
Wall Street is gathering momentum in less than a week for the next Fed meeting. The tech stocks scored their highest single-trading day gains in over a month. A sharp increase in artificial intelligence stock prices, including Nvidia and other tech stocks like SK Hynix, Tokyo Electron, and ASM, boosted them.
On top of that, this morning, a big sell-off movement by traders hours occurred due to concerns over August inflation figures. In the tech stock news, Nvidia’s stock surged by 8.2% on Wednesday, marking its biggest one-day gain in six weeks. Nvidia’s surge boosted semiconductor stocks globally, with companies like SK Hynix, Tokyo Electron, and ASM International rising. OpenAI is in talks to raise funds at a $150 billion valuation, nearly double its earlier valuation, with potential.
Additionally, OpenAI, backed by Microsoft, is reportedly in talks to raise $6.5 billion in funding, which would value the AI startup at around $150 billion—nearly double its previous $86 billion valuation. Thrive Capital is leading the round, with Microsoft, Apple, and Nvidia also considering investments. Additionally, OpenAI is exploring a $5 billion revolving credit facility to support its aggressive investment strategy as it strives to maintain a competitive edge in the rapidly growing AI industry.
August core inflation data shows similar and equal figures to the previous months. Still, other reporters suggest that food and energy data has moved slightly higher than July’s. While this small acceleration remains not harmful yet, investors moved and concluded that the Fed might consider examining its key interest rates by more than 25 basis points in the next meeting. The Fed is set to start their meeting in 17-18 of this month, and problems show more than 90% for quarter-point interest rate hikes.
Meanwhile, in Wall Street, as of 10:38 a.m. ET New York time, the Dow Jones industrial average was down by 0.1% to 40.819.80 basis points. The S&P 500 benchmark was up by 0.23% to 5,566.40 bps. The tech-heavy composite scored its highest single-day gains in a month by raising by more than 0.5%.
In other economic news, Boeing faces a potential strike as workers in the Pacific Northwest are likely to reject a labor deal, demanding better wages and benefits. Currently, over 33,000 workers from the U.S. Pacific Northwest are working to go on an open strike. The company has been trying to settle that in the past few weeks, and for now, they have achieved to reach a tentative agreement of a 25% pay bump.
In the oil industry, oil prices rose amid supply disruptions from Hurricane Francine, with Brent up 1.6% and WTI up 1.5%. UBS analysts shared on a more and said, “Hurricane Francine has likely disrupted about 1.5 million barrels of U.S. oil production, which we estimate will reduce September production in the Gulf of Mexico by around 50,000 barrels per day (bpd).” Furthermore, reports say that more than 39% of gasoline products have stopped in the Gulf of Mexico, and more than 171 offshore production plants have been evacuated by Wednesday.
