Stocks mixed as investors eye economy

He lives4 updates

• Wednesday, September 25, 2024 at 11:55 AM EST

  Slide Check: Nvidia Stock Is Soaring — Here’s Why

  Shares of Nvidia (NVDA), one of the most-traded stocks on Yahoo Finance, rose about 3% on Wednesday after Mizuho analyst Jordan Klein cited a recent report from Bain that suggested the company could lose 3% of its market value. Market forecast The value of the AI ​​hardware and software market is expected to swell to as much as $990 billion by 2027 — up from its current levels of around $185 billion.

  The analyst said the outlook “may allay buy-side concerns/uncertainty about the sustainability of the big cloud.” [capital expenditures] “And AI investment spending will continue well beyond 2025.”

  The stock price of everyone’s favorite AI company also rose after reports that CEO Jensen Huang had completed selling his shares in the company. Huang has sold more than $700 million worth of the company’s stock in the past few months.

  Other chip stocks moved in tandem with Nvidia’s moves.

  Shares of semiconductor giant Micron rose about 1% ahead of its highly anticipated fourth-quarter earnings report. Intel shares jumped about 4%, just a day after the company unveiled a pair of AI chips as it seeks to improve its data center business.

• 

  Wednesday, September 25, 2024 at 11:26 AM EST

  What does China’s stimulus package mean for stocks?

  China just announced its biggest economic stimulus since the pandemic.

  Yahoo Finance’s Jared Bleckere provides a detailed analysis of the impact of stimulus on stocks and commodities around the world:

  After the People’s Bank of China announced details of monetary stimulus and stock market support on Tuesday, the country’s benchmark CSI 300 Index (000300.SS) surged 4.3% — its biggest jump since July 2020.

  The country’s currency, the renminbi (CNH=X), fell 0.6% – the biggest drop since the Japanese yen collapsed in early August.

  In the US, stocks rose, but the biggest impact was felt in commodities. Silver futures (SI=F) surged more than 4.5% to their highest in more than a decade. Copper futures (HG=F) – which had already risen for nine days – notched their 10th straight gain, rising to their highest in two months.

  The stimulus, China’s latest attempt to pull its economy out of a slump caused by a turbulent property market and deflationary pressures, includes more than $325 billion in measures, mostly through monetary — rather than fiscal — channels.

  Chinese stocks continued to rise on Wednesday, with the Shanghai Composite Index ending the day up 1.2%.

  However, there are still growing doubts about whether these steps will succeed in transforming the economy.

  Read more about the impact here.

• 

  Wednesday, September 25, 2024 at 10:19 AM EST

  New Home Sales Decline in August

  New home sales fell in August after a sharp increase the previous month, as sky-high mortgage rates and high prices kept buyers mostly on the sidelines.

  New single-family home sales fell 4.7% month-over-month to an annual rate of 716,000, according to the Government data Retail sales data was released Wednesday morning. However, sales fell less than expected, as economists had expected a 5.3% decline.

  The median sales price fell 4.6% to $420,600, marking the seventh straight month of year-over-year declines. Mortgage rates are also on the decline, with prices falling for eight straight weeks.

  Mortgage applications rose to the highest level since 2022, according to MBA data released before the bell. The growth was driven by homeowners seeking to refinance loans as rates fell.

• 

  Wednesday, September 25, 2024 at 9:35 AM EST

  S&P 500, Dow Jones open higher

  The S&P 500 and Dow Jones opened in positive territory on Wednesday after each hit an all-time high the previous day.

  The benchmark S&P 500 index (^GSPC) rose about 0.1%, while the Dow Jones Industrial Average (^DJI) rose about 0.2%. The technology-heavy Nasdaq Composite (^IXIC) was near flat.