U.S. Major Averages Advance Ahead of Nvidia Conference and Rate Decisions

Barry Adams
18 Mar, 2024
New York City

Stocks on Wall Street traded higher, and investors looked ahead to monetary policy announcements from major central banks. 

The U.S. Federal Reserve, the Bank of England, and the Bank of Japan are expected to keep interest rates unchanged, but investors are looking ahead to the economic growth outlook and interest rate projections. 

Investors pared rate-cut expectations in the U.S. after consumer and wholesale price inflation stayed ahead of expectations in February, supporting the case for keeping higher rates for longer. 

Moreover, crude oil prices have rebounded in March, which is expected to keep overall inflation higher in the current month, denting expectations of a rate even after the next policy meeting in May. 

In addition, investors are looking forward to the release of U.S. housing starts, completions, building permits, and existing home sales data.

In the UK, the Bank of England is expected to keep its benchmark rate steady at 5.25%, and consumer price inflation is expected to edge higher by 0.7% in February.

Central banks in Norway, Turkey, and Switzerland are also expected to keep their interest rates steady.

In Tokyo, expectations are high that the Bank of Japan may finally end its negative interest rate regime and stem the decline in the yen after large corporations agreed with labor unions for a wage increase above 5% for the second year in a row. 

Japanese investors are also awaiting the release of inflation, industrial production, and international trade data this week. 

 

U.S. Indexes and Yields

The S&P 500 index increased 0.7% to 5,221.32, and the Nasdaq Composite rose 1.1% to 16,140.27. 

The yield on 2-year Treasury notes decreased to 4.71%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds edged down to 4.43%.

WTI crude oil increased $0.51 to $81.60 a barrel, and natural gas prices decreased 8 cents to $1.74 a thermal unit.

Gold decreased by $5.60 to $2,160.70 an ounce, and silver rose 1 cent to $25.15. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.34.

 

U.S. Stock Movers

Nvidia jumped 2.5% to $900.60 ahead of the company's annual GTC conference, where the chipmaker is expected to release new artificial intelligence-related products. 

Alphabet Inc. advanced 5.2% to $148.67 on a report that the company is in advanced talks with Apple to power its iPhones with Gemini AI. 

Bloomberg News first reported the discussions between the companies, which could not be independently verified. 

Super Micro Computer gained 2.4% to $1,097.99 as the company's stock traded as part of the S&P 500 index.