Tech Rally in the Face of Inflation Concerns
The stock market saw heightened volatility on September 12, 2024, driven by mixed inflation data. While the consumer price index (CPI) rose 0.2% in August, matching expectations, core CPI, which excludes food and energy prices, rose by 0.3%, higher than the anticipated 0.2%. This led to uncertainty about the Federal Reserve’s next move, with the market now predicting an 85% chance of a 25-basis-point rate cut at the next Federal Open Market Committee (FOMC) meeting.
Despite the inflation concerns, tech stocks staged a remarkable rally later in the day. NVIDIA Corporation (NVDA) surged 8.2%, thanks to reports that the U.S. government may allow the company to export high-tech chips to Saudi Arabia. Other tech giants followed suit, with Microsoft Corporation (MSFT) gaining 2.1% and Apple Inc. (AAPL) up 1.2%.
Financial Sector Rebounds After Initial Setback
Banks, which faced challenges earlier in the trading session, also managed a recovery. Goldman Sachs (GS) rose 0.9%, while JPMorgan Chase & Co. (JPM) edged up 0.8%. These gains, though modest, suggest resilience in the financial sector amid ongoing inflationary pressures.
Global Commodities on the Rise
Commodities also made headlines, with gold reaching an all-time high as investors sought safety amid rate cut expectations. Silver followed suit, climbing 2.3%. The surge in precious metals reflects broader concerns about inflation and potential global economic slowdown.
IPO Buzz and Market Records in India
Across the globe, the Indian stock market reached new heights, with the Sensex and Nifty 50 both hitting record levels. The Sensex gained 1.77%, closing at 81,523.16, while the Nifty 50 climbed 1.89%, finishing at 24,918.45.
Additionally, several IPOs are making waves, including the upcoming Northern Arc Capital Ltd offering, which has garnered significant attention ahead of its September 16 launch.
In conclusion, while inflation remains a concern, the rally in technology stocks and rising commodities prices highlight investor optimism in select sectors. With important inflation data still to come, the market remains poised for further shifts in the coming days.
