S&P 500 closes at record high, chip stocks lag
Stocks (^DJI, ^GSPC, ^IXIC) closed higher on Tuesday, with the S&P 500 hitting a record high, as investors await the highly anticipated Federal Reserve rate decision scheduled for Wednesday. However, the chip sector missed the broader market trend, closing lower as investors digested the product news from Nvidia's (NVDA) GTC conference.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
JOSH LIPTON: Stocks are in the green, green right across my screen all three major averages. It looks like the SPX, the S&P 500 will be able to close at a record, remember it was $5,175, I think we're going to do it, it looks like 5,178, a gain of about 6/10 of a percent here. On the Dow Jones, Dow is going to tack on about 8/10 of a percent, about 320 points tech heavy NASDAQ takes the bronze up about 4/10 of a percent daily.
JULIE HYMAN: And I'm watching the chip sector. We're seeing AMD shares lead the broader chip sector lower today, closing down about 5%. It was down as much as 7% earlier in the session on the heels of that NVIDIA conference. Chip maker-- chip equipment maker ACM research closing down 4%, that did fall as much as 16% earlier. But when we talk about NVIDIA, this was a stock that was down earlier today but did end up closing in the green, up 1%.
It began to reverse some of those losses in midday trading around 12:30 PM Eastern. So investors seem to be really digesting this new chip news. . Blackwell, the importance of it as we think about the implications for the broader market as well.
JOSH LIPTON: Yeah. It was interesting to watch NVIDIA's price action because we were in the red, looks like we're going to finish higher there by about 1%. It was interesting we were talking earlier with tech analyst Patrick Moorhead, Julie, and just the story that Jensen Huang was telling in that two-hour keynote and really hammering home that listen, we are a chip giant, but his point was we're more than that. We're a true ecosystem.
He talked about the software and the networking and how when we talked to Patrick Moorhead how critical that is for investors.
