Stocks Slip as Fed Signals and Key Inflation Data Loom: Nvidia Rallies, Meta Unveils AR Push

The S&P 500 fell on Wednesday as investors paused to assess the recent market rally, with a focus on upcoming inflation data and potential signals from the Federal Reserve regarding interest rate policy.

Nvidia headquarters in Santa Clara, California. Photographed by user Coolcaesar

By 4:00 p.m. ET (2000 GMT), the Dow Jones Industrial Average dropped 293 points, or 0.7%, while the S&P 500 slipped 0.2%, according to the website Mint. The tech-focused Nasdaq Composite edged up 0.1%, reflecting mixed sentiment in the market.

The slight pullback followed Tuesday’s gains, as investor optimism continued to linger from last week's decision by the Federal Reserve to cut interest rates. While the markets have shown positive momentum recently, traders are awaiting further clarity on the Fed's future plans.

Fed Officials’ Speeches and Inflation Data in Focus

Several Federal Reserve officials are expected to speak in the coming days, with Chair Jerome Powell's address on Thursday being closely watched. Market participants hope for further insight into the Fed’s interest rate strategy, particularly after its recent rate cut of 25 basis points, the first such move in over a decade. Analysts are speculating that the central bank may continue its easing policy to support the economy amid ongoing concerns.

The U.S. Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred inflation gauge, is due on Friday. This report is critical as it could influence future monetary policy decisions. On the economic calendar, building permits for August showed a slower-than-expected increase, raising concerns about the U.S. housing market’s health and its potential impact on economic growth.

Nvidia, Meta Platforms Drive Market Moves

Will Buckner

Nvidia (NASDAQ: NVDA) shares climbed 2% on Wednesday as per Reuters, extending gains from the previous session. The stock continued its upward momentum after reports that CEO Jensen Huang had completed a stock-selling plan, disposing of over $700 million worth of shares. Huang's sales initially shook investor confidence, particularly after Nvidia reported quarterly results that fell short of lofty expectations and announced delays in its advanced AI chips.

Meta Platforms Inc. (NASDAQ: META), the parent company of Facebook and Instagram, rose 0.9%. The tech giant made headlines by debuting its first augmented reality glasses at its Connect event and announcing new AI features across its platforms, as stated in an article from The Wall Street Journal. Meta’s push toward AI integration has driven significant interest in its evolving product portfolio.

Flutter Entertainment Rises; Stitch Fix Declines Sharply

Flutter Entertainment PLC (NYSE: FLUT) surged 5% after FanDuel, its U.S. subsidiary, announced a buyback of up to $5 billion in stock and set ambitious long-term growth targets, aiming to double profits by 2027.

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In contrast, Stitch Fix (NASDAQ: SFIX) shares tumbled nearly 39% after providing weaker-than-anticipated revenue guidance, with the company projecting a return to growth by 2026. Despite a narrower-than-expected Q4 loss, the revised outlook weighed heavily on the stock.