Nvidia-led rally pauses as investors eye Jackson Hole
World stocks receded on Thursday as investors took a breather after bets that tech darling Nvidia will deliver blockbuster results paid off, while Treasury bond yields edged back higher following a big sell-off.
Profit-taking weighed on shares across the board, with the MSCI All Country stock index dropping 0.91%. In the United States, the Dow Jones lost 1.08%, the S&P 500 fell 1.35% and the Nasdaq Composite slid 1.9%.
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Investors are now waiting for a speech by Federal Reserve Chairman Jerome Powell on Friday at a central bank summit in Jackson Hole, Wyoming, for clues on the U.S. interest rates outlook, though Federal Reserve Bank of Philadelphia President Patrick Harker gave a sign of things to come.
Harker said in an interview on Thursday that he doubted the Fed will need to raise rates again, but also indicated he was not ready to predict when the Fed might start cutting rates.
«Right now I think that we've probably done enough» and it is probably a good idea to hold steady for the rest of this year and see how that affects the economy, Harker told CNBC.
Profit-taking also took hold in Europe, where European stocks gave up earlier gains to edge down 0.41%.
«To see what Jerome Powell now says in the light of some weaker underlying economic data — how he's going to message? Are we at the peak? Are we going to hold? — I think it's the absolutely crucial thing,» said Robert Alster, chief investment officer at Close Brothers Asset Management.
Nvidia gave up earlier gains to end flat after the company's revenue forecast demonstrated how a boom in generative AI technologies that can read and write in human-like ways — and powered almost exclusively by Nvidia's chips — shows no signs of slowing down.
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