As of 11:31 AM ET, the Nasdaq Composite (^IXIC +1.62%) is up 1.54% to 26,379, the S&P 500 (^GSPC +1.13%) has climbed 1.01% to 7,628, and the Dow Jones Industrial Average (^DJI +0.70%) has risen 0.55% to 51,745 as investors looked beyond yesterday’s post-Fed sell-off.
Today’s Change
Index Level
7,637.16
Gold is trading at $4,364.66, up 2.37%, and the 10-year Treasury yield fell 6 basis points to 4.95%. The energy sector saw the biggest drop, while technology and healthcare stocks outperformed.
Today’s biggest moves
CoreWeave fell by almost 4% this morning after it announced a $3 billion convertible bond sale. Investors are increasingly cautious about tech firms taking on debt to fund artificial intelligence (AI) buildouts. Memory stocks gained, including Sandisk and Micron Technology. Generac soared almost 20% on news of an Amazon data center deal.
What this means for investors
The dust has settled following yesterday’s rate hike, with major U.S. indexes rising this morning and confidence returning to growth stocks. A combination of factors helped to overcome the initial reaction to Federal Reserve Chair Kevin Warsh’s hawkish tone: Falling oil prices, lower Treasury yields, and increased confidence that the Fed is committed to curbing inflation.
However, investors can expect further volatility in the coming months as disruptions to the oil supply, a key driver of inflation, have not abated Moreover, the full impact of calls from tech leaders for a slowdown in AI development remains to be seen. If you haven’t recently revisited your portfolio to look at the level of risk and your exposure to different sectors, particularly AI, now may be a good time for a check-in.
Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Micron Technology. The Motley Fool has a disclosure policy.
