Volatility on Wall Street and signals from technology
The start of the week also showed volatility on Wall Street. Investors are evaluating the results that Nvidia will present on Wednesday and the resumption of official data after the end of the government shutdown.
Alphabet stood out with an advance of more than 5% after Berkshire Hathaway revealed a $4.3 billion stake in the technology company, while reducing its exposure to Apple. The latter’s shares fell slightly.
The attention on Nvidia responds to the magnitude of the rebound that stocks linked to artificial intelligence have experienced during the year. Its results will test whether that momentum has solid foundations or whether it is beginning to show signs of exhaustion.
The main indices advanced marginally at mid-session. The Dow Jones added a few points, the S&P 500 moved in positive territory and the Nasdaq showed a moderate increase, while the technology sectors behaved in a mixed manner.
Morgan Stanley’s warnings hit server manufacturers such as Dell and Hewlett Packard Enterprise, both affected by downgrades due to risks in demand linked to AI.
The quarterly reporting season is entering its final phase, but the figures from Walmart, Home Depot and Target are still to be known, which will serve to evaluate the strength of consumption at the end of the year.
In commodity markets, gold fell under pressure from a stronger dollar and reduced expectations of a rate cut in December.
The precious metal was trading around $4,070 per ounce, while futures for December also declined. The appreciation of the dollar index made bullion more expensive for holders of other currencies.
David Meger of High Ridge Futures described a market caught in a back-and-forth ahead of a battery of data that could redefine expectations about the Fed.
The market perceives a tougher stance from various central bank officials, which has reduced the probability of a 25 basis point cut in December to about 45%, according to FedWatch.
Silver advanced slightly, while platinum and palladium registered moderate falls, in a session influenced by the strength of the dollar and the general reassessment of risks pending new economic figures.
