Wall St recovers as energy shares climb; Nvidia woes deepen
SPY•Wall Street's main indexes rose on Thursday as higher oil prices lifted energy shares, while Nvidia fell 4.2% amid concerns about the future of AI companies tied to the chipmaker. The Dow gained 0.24%, the S&P 500 rose 0.17% and the Nasdaq added 0.14%.
1. Indexes turn higher
Wall Street's main indexes staged a turnaround on Thursday as higher oil prices lifted energy shares. At 11:38 a.m. ET, the Dow was up 0.24%, the S&P 500 0.17% and the Nasdaq 0.14%; energy led S&P 500 sectors with a 1.3% gain.
2. Nvidia and AI concerns
Nvidia shares were down 4.2%, having bounced off session lows, as Jensen Huang's exit stirred concerns about the AI heavyweight and companies tied to it. Retail investors bought about $111 million of Nvidia shares in the first half hour of trading, the biggest opening bid on record for the stock, Vanda Analytics data showed. Nvidia has backed several firms, including customers, through financing arrangements that face greater scrutiny after Huang's departure.
3. Inflation and rate outlook
Investors awaited Friday's Producer Price Index after a hotter-than-expected consumer price reading earlier in the week. Traders saw a December Federal Reserve rate hike as certain, with about an 8% chance of a 50-basis-point increase. Oil prices rose after President Donald Trump said, "we don't need a deal with Iran."
