Nasdaq 100 and S&P500: Nvidia Drops, However AI Buzz and Fed Bets Preserve US Shares Afloat…

There was a little bit of a combined bag right here. Tremendous Micro (SMCI) slipped 1.1%, possibly simply following Nvidia’s lead. However Broadcom (AVGO) caught a bid — up 2.5% — after Oppenheimer hiked its worth goal. Snowflake (SNOW) was the true standout, rallying practically 18% after elevating long-term income steering, leaning laborious into the AI pattern. HP (HPQ) additionally popped 2.four% on better-than-expected outcomes and rising PC demand.

As for the broader tech sector, it was regular. The S&P tech index inched up zero.2%, and the SOX semiconductor index added zero.three%. Massive-cap AI consumers like Microsoft and Meta barely moved the needle, each buying and selling barely greater.

Is the Fed setting the stage for a September minimize?

That’s the opposite piece merchants are watching. The S&P 500 continues to hold round document highs partly due to rising conviction that the Fed will lastly ease off the brakes subsequent month. Futures are pricing in practically 89% odds of a price minimize in September, and the jobless claims quantity helped — fewer claims than anticipated, paired with a Q2 company revenue rebound, made for a soft-landing form of vibe.

However once more, time will inform. Friday’s PCE inflation information is the following massive piece. If inflation perks up, the Fed would possibly hit pause. And don’t neglect, Fed Governor Waller is about to talk later at the moment — he’s thought of a dove, so merchants will probably be parsing each phrase.

What ought to merchants be watching subsequent?

We’re nonetheless in a market that desires to consider in AI and a tender touchdown. That’s why pullbacks, particularly in tech, hold getting purchased. However Nvidia’s China overhang is a reminder that not all clouds have cleared. For now, watch how the market digests PCE information tomorrow — that’s the important thing swing issue for the rate-cut story.