Wall Street rises on chips' strength ahead of Nvidia results

Wall Street’s Nasdaq surged on Wednesday as chip stocks rallied ahead of Nvidia’s earnings report, seen as a key indicator of AI demand, while broader markets remained cautious amid rising Treasury yields and Fed rate hike expectations. Nvidia’s stock climbed 0.7% in anticipation of its results, while other tech giants like Intel and Micron Technology also advanced, though mixed signals from retailers like Target and Hasbro weighed on the S&P 500 and Nasdaq." "article": "Wall Street’s Nasdaq led gains on Wednesday, driven by a rebound in chip stocks ahead of Nvidia’s quarterly earnings report. Nvidia, the world’s most valuable company and a cornerstone of the AI boom, rose 0.7% as investors awaited its results after market close. The company’s performance will be scrutinized for signs of sustained AI infrastructure demand, which underpins high valuations in the tech sector. The broader chip sector saw strong gains, with Marvell Technology up 7.8%, Intel rising 6.3%, and Micron Technology climbing 3.6%. The Philadelphia Semiconductor index advanced 2.9%, reflecting investor optimism about the sector’s outlook. Meanwhile, the Dow Jones Industrial Average gained 0.07%, the S&P 500 rose 0.25%, and the Nasdaq Composite climbed 0.43%, though eight of the 11 S&P 500 sectors remained in positive territory. Stocks have faced pressure recently due to higher Treasury yields, with the 10-year yield easing slightly to 4.651% after hitting a 16-month high. Traders now anticipate a greater than 40% chance of a 25-basis-point Federal Reserve rate hike in December, with expectations for a 50-basis-point increase rising to 13.7% from 4.2% a week ago. The Fed’s latest meeting minutes, released later in the day, will provide further insight into policymakers’ stance on inflation amid rising oil prices and geopolitical tensions in the Middle East. Retail stocks delivered mixed signals: TJX rose 5.4% after raising its annual sales and profit forecasts, while Target fell 7.1% despite doubling its sales growth outlook. Hasbro dropped 8.8% after reaffirming its annual forecast, and Intuit declined 3.5% following reports of a 3,000-employee layoff. The NYSE saw advancing issues outnumber decliners by a 1.68-to-1 ratio, while the Nasdaq’s ratio was 1.61-to-1, with the S&P 500 and Nasdaq recording a mix of new highs and lows.