US Stocks Rise Slightly Ahead of FOMC Meeting
US stock indexes rose slightly on Wednesday (February 18th), extending their modest rally for the third session since last Thursday's sharp decline. This movement reflects the market's reassessment of the extent to which "AI disruption" could impact the technology sector, especially after surging valuations and AI infrastructure spending sparked concerns this year.
The three major indexes rose less than 0.3%, indicating limited but consistent gains. Investors remain skeptical about whether the massive spending on AI infrastructure by tech giants will quickly translate into higher earnings, especially with expectations already high and megacap valuations expensive.
Among technology stocks, Nvidia rose nearly 2%, extending its recovery from the previous session. Sentiment toward Nvidia was boosted after MetaTrader announced it would use millions of Nvidia chips in its new data centers, signaling continued strong demand for AI at the corporate level.
Meanwhile, Amazon and Micron also rallied sharply after several major asset managers announced increased stakes in the two companies. However, not all tech stocks moved in the same direction: AMD fell nearly 4%, and Palo Alto Networks plunged around 10% after releasing performance projections that fell short of market expectations.
Beyond AI factors, the prospect of a Fed interest rate cut this year also boosted risk sentiment ahead of the release of the FOMC Meeting Minutes. The market is waiting to see whether the minutes will strengthen confidence in the interest rate path, potentially determining whether Wall Street's modest gains can continue or turn volatile. (yds)
Source: Newsmaker.id
