"After a slow start on Tuesday, all the major indices began to rally by noon and finished well in the green by the close. The initial downturn was sparked by news that Alphabet Inc. (NASDAQ: GOOG) was in talks with Meta Platforms Inc. ( NASDAQ: META) to sell them its custom AI chips. Google's own specialized chips, called Tensor Processing Units (TPUs), are optimized for AI and machine learning workloads and are typically used in its own data centers. NVIDIA Inc. ( NASDAQ: NVDA) was down almost 3% by the close on the news, which started the early selling, and while the rest of the indices recovered, the chip giant finished the day in the red."
"Hopes for a rate cut, which had fallen to as low as 20% a few weeks ago, have jumped back to 80%, and there is some talk on Wall Street that a January cut could also be in the cards. Benign wholesale inflation data and a weakening job market are all aiding the push for continued rate cuts. Plus, amid speculation that White House National Economic Council Director Kevin Hassett may be the next Chairman of the Federal Reserve, many feel he would aggressively pursue lower interest rates to lower borrowing costs."
"After a stellar day to start the week, prices across the energy complex were lower across the board. Reports that Ukraine has tacitly accepted terms for an end to the almost four-year war with Russia sent the black gold tumbling. Add in concerns over a supply glut, and that was all it took to bring the big benchmarks and natural"
Futures opened modestly higher as major U.S. indices rallied into the close despite early selling. News that Alphabet held talks to sell its custom Tensor Processing Units to Meta sparked the initial downturn and weighed on Nvidia, which closed nearly 3% lower. The Dow led gains, with the S&P 500 and Nasdaq also finishing higher. Treasury yields declined for a second day as market-implied odds of Fed rate cuts surged, helped by softer wholesale inflation and a weakening labor market. Oil and energy prices fell on reports of Ukraine tacitly accepting terms and renewed supply-glut concerns.
Read at 24/7 Wall St.
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