The S&P 500 is falling as the Fed decision looms

None

NEGATIVE
The S&P 500 fell Tuesday as traders took in the latest announcements from Nvidia’s artificial intelligence conference.
Wall Street also turned its eyes to Washington as the Federal Reserve kicked off its two-day policy meeting.
The broad market index dipped 0.2%, while the Nasdaq Composite dipped 0.5%.
The Dow Jones Industrial Average dipped 19 points.
Chip darling Nvidia pulled back 2% as investors evaluate the news from its first-ever GTC Conference.
CEO Jensen Huang unveiled Nvidia’s latest AI chip, labeled Blackwell, which he touted as a significantly more powerful successor to its chips that power a multitude of AI operations.
That said, the stock had rallied more than 78% year to date heading into the event, possibly enticing investors to book some profits following the news.
Super Micro Computer , a primary vendor for building out Nvidia’s AI servers, dropped 10% on news of a share offering.
Shares have ripped more than 250% higher this year on AI enthusiasm, leading the stock to be added to the S&P 500 on Monday.
Wall Street is also awaiting guidance on the path forward for monetary policy as the Federal Reserve begins its two-day policy meeting on Tuesday.
A recent slate of worrying inflation reports has investors concerned that the central bank could signal interest rates will remain higher for longer than expected.
However, fed funds futures currently forecast a 99% likelihood that the Fed will leave benchmark interest rates unchanged this week, according to the CME FedWatch Tool.
“The Fed is going to be taking a lot of the oxygen out of the room this week as they conclude their March meeting on Wednesday afternoon,” said Sam Millete, director of fixed income at Commonwealth Financial Network.
“It’s going to be a really interesting meeting because markets don’t expect any interest rate changes at this meeting, and in fact, don’t have any changes priced into the next meeting either.”

As traders digested the most recent announcements from Nvidia’s artificial intelligence conference, the SandP 500 declined on Tuesday. At the start of the Federal Reserve’s two-day policy meeting, Wall Street also focused on Washington.

The Nasdaq Composite fell by 0 points5 percent, and the broad market index fell by 0 points2. 19 points were taken off the Dow Jones Industrial Average.

Nvidia, the chip darling, retreated 2% while investors assessed the news from its inaugural GTC Conference. Nvidia’s CEO Jensen Huang unveiled the company’s newest AI chip, called Blackwell, and hailed it as a far more potent replacement for its chips, which power a plethora of AI operations. Having said that, the stock had already increased by more than 78% year to date when the event occurred, which might have encouraged investors to book some profits after the announcement.

On hearing about a share offering, Super Micro Computer, a major supplier for Nvidia’s AI servers, saw a 10% decline. Due to the enthusiasm surrounding AI, shares have surged more than 250 percent this year, and on Monday, the stock was added to the S&P 500.

As the Federal Reserve kicks off its two-day policy meeting on Tuesday, Wall Street is also waiting for word on the direction that monetary policy will take.

Investors fear the central bank may be hinting that interest rates will stay higher for longer than anticipated in light of a string of alarming inflation reports released recently. Nonetheless, the CME FedWatch Tool indicates that fed funds futures currently project a 99 percent chance that the Fed will maintain benchmark interest rates this week.

According to Sam Millete, director of fixed income at Commonwealth Financial Network, “the Fed is going to be taking a lot of the oxygen out of the room this week as they conclude their March meeting on Wednesday afternoon.”. The markets don’t anticipate any changes in interest rates at this meeting, and they haven’t priced any changes into the next one either, so it should be an extremely interesting meeting. “.

scroll to top