Top Movers of the Day
1min read On Wednesday, U.S. markets turned a sharp early loss into a late rally, marking the third consecutive day of gains. Initially, markets dropped over 1.5% due to a mixed Consumer Price Index (CPI) report. While headline inflation rose as expected by 0.2%, core inflation, which excludes food and energy, rose 0.3%, slightly exceeding estimates. This raised concerns about high housing prices. However, positive comments from Nvidia's CEO about AI demand reversed the trend, boosting tech stocks, particularly semiconductors. Nvidia rose more than 8%, driving a 5% gain in the PHLX Semiconductor Index. The S&P 500, Dow Jones, and Nasdaq all posted gains, with the Nasdaq leading at 2.17%.
Despite inflation concerns, investors are still expecting a 25-basis-point interest rate cut by the Federal Reserve next week. While some had hoped for a steeper cut, this expectation diminished following the CPI release. Rate-sensitive sectors like financials and healthcare struggled, while tech stocks surged. Treasury yields also remained stable after strong demand for a 10-year note auction.
Here are the top movers of the day:
Starbucks surged 5% after its new CEO pledged to improve in-store experiences.
Nvidia soared 8% following optimistic remarks on AI hardware, driving a 5% rise in semiconductor stocks.
Trump Media dropped more than 10% following a debate, and Rentokil Initial plummeted 21% after lowering growth expectations.
GameStop tumbled 12% due to weak sales and a stock offering announcement.
Other notable movers included Viking Therapeutics, which rose 11% on positive coverage.
Solar stocks, which rallied after the debate, with First Solar up 15% and Sunrun advancing 11%.