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19.09.2024 17:55:35

Why Nvidia Stock Jumped After the Big Fed Rate Cut

Yesterday, the Federal Reserve delivered on the start of what looks likely to become a long-awaited interest rate cutting cycle. Stocks are generally rising in the aftermath as less expensive capital can help drive business growth.One of those stocks gaining ground Thursday morning was artificial intelligence (AI) chip leader Nvidia (NASDAQ: NVDA). As of 11:40 a.m. ET, Nvidia shares were up by 5.3%. But it wasn't just the Fed rate cut that had investors pouring into Nvidia stock today.CEO Jensen Huang also just spoke on stage with Salesforce CEO Marc Benioff at the Dreamforce annual technology gathering in San Francisco hosted by Salesforce. He noted that the AI movement is transitioning from an industry of tools to an industry of skills. Huang called the opportunity from here "gigantic." His comments gave investors reason to believe that the huge run in Nvidia shares isn't over. Even with it well off its record level, Nvidia stock is still higher by over 140% year to date.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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