On Tuesday, September 17, Eastern time, the three major United States stock indexes closed mixed, with the Dow and the S&P 500 both hitting record intraday highs. The Federal Reserve will hold a two-day monetary policy meeting starting today and will announce the results tomorrow. The market sees a 50 basis point rate cut by the Fed as more likely.
BlackRock and Microsoft make a big move! The two companies plan to jointly raise $30 billion for AI investments, with Nvidia providing support.
Energy production in the Gulf of Mexico continued to be affected by hurricanes, and WTI crude oil broke through $71 per barrel.
The market raised expectations for a 50 basis point rate cut by the Federal Reserve
At the close, the Dow fell 15.90 points, or 0.04%, to 41,606.18, the Nasdaq rose 35.93 points, or 0.20%, to 17,628.06, and the S&P 500 added 1.49 points, or 0.03%, to 5,634.58.
In Tuesday's session, the Dow rose as high as 41,835.28 and the S&P 500 rose as high as 5,670.81, both hitting record intraday highs.
The Federal Reserve will hold a two-day monetary policy meeting starting today, with the results of the meeting announced on Wednesday, followed by a press conference by Fed Chair Jerome Powell.
Wall Street investors predict a 64% chance that the United States Federal Reserve will cut interest rates by 50 basis points this week. According to CME Group's Fed Watch tool, traders are currently pricing in a 67% chance that the central bank will cut interest rates by 50 basis points.
BNP Paribas analysts said in a report that the increased likelihood of a 50 basis point rate cut by the Fed this week could lead to a "bull market steepening" in the United States yield curve, meaning short-term Treasury yields are falling faster than long-term Treasury yields, a trend that could gain momentum.
BlackRock and Microsoft plan to raise $30 billion for AI investments
Technology stocks were higher across the board, with Apple up 0.22%, Amazon up 1.08%, Netflix up 1.49%, Google up 0.8%, Facebook up 0.57%, Microsoft up 0.88%, and Tesla up 0.48%.
BlackRock is preparing to launch a more than $30 billion AI investment fund with tech giant Microsoft to build data centers and energy projects to meet the growing demand for AI.
The strategy, called the Global AI Infrastructure Investment Partnership, aims to attract $30 billion in private equity investment and use the funds to invest up to $100 billion, the companies said in a statement.
Chip giant Nvidia will use its expertise in AI-powered data centers and factories to support the collaboration.
Chip stocks were mixed
Chip stocks were mixed, with Intel up 2.68%, Micron Technology up 1.78%, Qualcomm up 1.25%, Chaowei Semiconductor down 0.83%, Broadcom down 0.95%, TSMC down 1.01%, and Nvidia down 1.02%.
Intel CEO Pat Gelsinger has made Amazon's cloud service AWS a customer for the company's manufacturing operations, which could bring business to its factories under construction in the United States and help turn the struggling chipmaker's decline.
In addition, Intel said it would further separate its chip manufacturing and design operations as part of a series of new measures to address one of the worst crises in the company's 50-year history.
Intel's CEO said the company will also suspend factory projects in Germany and Poland for two years and a manufacturing project in Malaysia until demand picks up.
WTI crude oil broke above $71 a barrel
Optimism that the Federal Reserve will cut interest rates this week is heating up, and energy production in the Gulf of Mexico is still disrupted by the hurricane, and oil prices are supported.
WTI crude futures for October delivery rose $1.10, or 1.57%, to settle at $71.19 a barrel.
United States Safety and Environmental Enforcement Agency (BSEE) said Tuesday that 6 percent of oil production in the United States Mexico Bay area was shut down due to the impact of Storm Francin, and 10 percent of natural gas production was shut down.
Energy stocks rose collectively, with Exxon Mobil up 1.34%, Chevron up 0.96%, ConocoPhillips up 2.61%, Schlumberger up 2.71%, and Occidental Petroleum up 1.52%.
There has been an explosion of Chinese assets
Popular Chinese concept stocks generally rose, Dada Group rose 21.7%, Bit Digital rose 10.98%, GDS rose 10.61%, Daqo New Energy rose 9.9%, Century Internet rose 9.89%, Futu Holdings rose 4.92%, Canaan Technology rose 4.85%, and iQiyi rose 4.06%.
China's new energy vehicle stocks rose collectively, with NIO up 0.28%, Xpeng up 1.51%, and Li Auto up 12.28%.
(Compiled by Zhao Xinyi)
Editor: Joey
Review: Muyu