Nvidia and Amazon Lead Wall Street Rebound as Markets Focus on the Fed
The rebound marks a contrast with early-month weakness, when AI-related stocks pulled back amid fears of high valuations.
Quick overview
- The S&P 500 and Nasdaq rose, driven by gains in AI-linked technology stocks amid a reassessment of market valuations.
- Nvidia led the rally with a significant deal to supply AI chips to Meta Platforms, reinforcing strong demand for AI infrastructure.
- Minutes from the Federal Reserve indicated a consensus to maintain interest rates, though there are differing views on future policy directions.
- Market sentiment remains cautious as investors await clearer signals regarding inflation and potential rate cuts later this year.
The S&P 500 and Nasdaq advanced, driven by AI-linked technology stocks, as markets reassessed valuations after recent volatility.
Minutes from the Federal Reserve showed broad consensus to hold rates steady, though divisions remain over the next policy steps.
Wall Street’s main indexes closed higher on Wednesday, led by a rebound in major artificial intelligence names after weeks of market caution. The S&P 500 rose 37.05 points (+0.56%) to 6,880.27, the Nasdaq Composite gained 170.88 points (+0.76%) to 22,749.27, and the Dow Jones added 123.44 points (+0.25%) to 49,656.63.
Nvidia sets the pace
The rally was led by Nvidia, which extended its gains after announcing a multi-year agreement to sell millions of current and next-generation AI chips to Meta Platforms. The deal reinforced expectations that structural demand for AI infrastructure will remain strong, despite recent concerns over stretched valuations and the timeline for monetization.
Amazon and Microsoft also moved higher, while data storage companies such as Sandisk, Western Digital, and Seagate Technology maintained a positive tone, consolidating gains driven by the AI investment boom.
The rebound marks a contrast with early-month weakness, when AI-related stocks pulled back amid fears that valuations had become excessively demanding.
Fed on hold, but uncertainty remains
Markets also digested the minutes from the January 27–28 meeting of the Federal Reserve, which showed near-unanimous agreement to keep interest rates unchanged. However, the document revealed internal اختلافات over the future path of monetary policy.
According to the CME FedWatch tool, traders currently assign around a 50% probability to at least a 25-basis-point rate cut at the June meeting.
For now, markets remain in a delicate balance: the structural momentum of artificial intelligence continues to support risk appetite, while inflation and labor market data will determine whether the Fed begins easing policy in the middle of the year. Technology stocks reclaimed leadership, allowing major indexes to close in positive territory as investors continue to search for clearer signals on the central bank’s next move.
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