Wall Street Green Ahead of Fed
US stocks opened higher at the start of the Fed's policy week: the S&P 500 +0.4%, the Nasdaq +0.5%, and the Dow Jones Industrial Average up about 50 points. The gains came amid market expectations that the Fed will cut interest rates by 25 bps this week, with the focus on the dot plot and Jerome Powell's directive to determine the next pace of easing.
On the individual stock front, Tesla surged after a regulatory filing revealed Elon Musk bought ~US$1 billion worth of shares last Friday—fueling buying interest and positive sentiment around the company's robotaxi/AI prospects.
Conversely, Nvidia declined after Chinese regulators released preliminary results finding antitrust violations related to its 2020 acquisition of Mellanox; this sentiment also negatively affected several other US chipmakers. Texas Instruments also halted operations following China's anti-dumping probe of US-origin analog chips.
The macro backdrop also included US-China trade talks in Madrid. President Donald Trump hinted at progress—including on the TikTok issue—and said he would speak with Xi Jinping on Friday. The outcome of the negotiations and the Fed's decision will determine the direction of global risk. (ayu)
Source: Newsmaker.id
