Wall Street's Focus Shifts to Fed, Nvidia Slump: Yahoo Finance

As the year draws to a close, Wall Street's attention is turning towards the Federal Reserve's final interest rate decision of 2024. The central bank is widely expected to cut its benchmark rate by 0.25 percentage points, marking its third consecutive reduction this year. However, economists are divided on the outlook for future rate cuts, with many bracing for a slower pace in 2025 due to lingering inflation and potential policy changes from the incoming Trump administration.

Meanwhile, tech giant Nvidia has been making headlines for all the wrong reasons. The company's stock price has been volatile, with a 52-week low of 47.32 USD and a high of 152.89 USD. Despite a strong buy recommendation from 54 analysts and a robust financial performance, with a market cap of 3.18 trillion USD, Nvidia's stock has been under pressure due to increased scrutiny from China's antitrust regulator.



China's State Administration for Market Regulation (SAMR) is investigating Nvidia's 2020 acquisition of Mellanox Technologies, signaling increased scrutiny of major technology transactions in the market. This investigation, along with the delay of Synopsys' acquisition of Ansys, indicates China's intent to push back on U.S. trade policies. The increased scrutiny could affect Nvidia's future acquisitions and stock performance, but the company's strong financials suggest it can weather the storm.



The delay in approval for Synopsys' acquisition of Ansys by SAMR also signals a shift in China's trade policies, which could impact the broader tech industry and Nvidia's competitors. The delay may create uncertainty and potential barriers to entry, affecting global tech companies' expansion plans. Nvidia, as a key player in the semiconductor industry, may face increased competition if other companies are hindered by regulatory hurdles. However, Nvidia's strong market position and diverse product offerings may help it navigate these challenges.

In a separate development, Verizon and Nvidia have partnered to develop an AI-powered private 5G platform stack. This collaboration enables real-time AI applications, catering to a wide range of industries. The new solution, which is expected to be demonstrated by Verizon engineers in early 2025, opens up new revenue streams for Nvidia and strengthens its market position in the AI and 5G markets.



As Wall Street focuses on the Fed's rate decision and Nvidia's stock slump, investors should keep an eye on the broader tech industry and the potential impact of regulatory changes in China. While Nvidia faces challenges from increased scrutiny, its strong financial performance and diverse product offerings position it well for long-term growth. The partnership with Verizon also presents an opportunity for Nvidia to expand its reach and tap into new revenue streams.

In conclusion, the shifting focus of Wall Street towards the Fed's rate decision and Nvidia's stock slump highlights the importance of staying informed about the broader tech industry and the potential impact of regulatory changes. As investors navigate the complex landscape of tech stocks, they should consider the long-term prospects of companies like Nvidia, which have the financial strength and innovation to weather challenges and capitalize on new opportunities.