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Wall Street closed higher on Monday, with the Nasdaq bouncing
back from two small weekly losses, as growth stocks such as
Alphabet and Tesla boosted the tech-heavy index.
Most megacap growth stocks edged lower in premarket trading.
Investor darling Nvidia struggled for direction after the
chipmaker unveiled the Blackwell B200, an AI chip it says is up
to 30 times faster than its previous chip. Some investors
suggested the news was priced into the high-flying stock.
Fellow chipmaker AMD dipped 1.7%, while Super Micro Computer,
which makes AI-optimized servers with Nvidia's chips, fell 1.6%.
All eyes are on U.S. central bankers who are expected to hold
rates steady at the end of their two-day meeting on Wednesday.
But, investors are concerned that their new economic projections
may be a wild card, potentially signaling fewer interest rate
cuts and a later start to the policy easing.
Robust inflation data has pushed traders to pull back bets of
the first rate cut coming in June to 55.2% from 71% at the start
of last week, according to the CME Fedwatch Tool.
"With price rises still steamier than expected, signs of a more
watchful, wary Fed are likely to emerge from this meeting," said
Susannah Streeter, head of money and markets, Hargreaves
Lansdown.
"However, the wave of exuberance is continuing among investors
still charged with enthusiasm about the seemingly infinite
possibilities that artificial intelligence will bring to the
corporate world."
Among other movers, crypto-exchange operator Coinbase Global and
miners Riot Blockchain and Marathon Digital Holdings shed
between 4.3% and 6.5%, tracking the sharp slide in bitcoin.
Spire Global rose 18.5% after the company announced a
collaboration with Nvidia for AI-driven weather prediction.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Savio D'Souza)
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