Nvidia rebounded from a three-day decline, offering an opportunity for long investors to buy in as US indexes rose. Fed Governor Michelle Bowman mentioned the possibility of an interest rate hike. Investors are keeping an eye on commentary from Federal Reserve officials and the upcoming personal consumption expenditures data.
After briefly becoming the world’s largest company last week, Nvidia lost $430 billion over three days. The stock fell into correction territory during this sell-off. Analysts believe the drop from record highs was largely due to profit-taking by investors, with little fundamental news to push the stock lower. Some view this as a buy-the-dip moment before Nvidia’s next earnings report.
Governor Bowman warned of risks of an inflation rebound, indicating that interest rate cuts are not guaranteed this year. The 10-year Treasury yield inched up to 4.25%. In other financial markets, West Texas Intermediate and Brent crude oil prices slipped, while gold decreased. Bitcoin remained stable at $61,105 at the start of the trading day.