Thu Sep 12 16:16:00 UTC 2024: ## Stocks Rise, Led by Nvidia and AI Plays, as Inflation Cools

**New York, NY** – Major US stock indexes closed higher on Thursday, led by gains in technology stocks, particularly Nvidia, which surged following strong quarterly earnings and bullish commentary from its CEO. The Nasdaq Composite, home to many tech giants, closed above its 50-day moving average, a positive sign for the market.

Nvidia’s gains came on the back of CEO Jensen Huang’s comments about the strong return on investment for AI infrastructure and analyst Stacy Rasgon’s bullish outlook on the company’s prospects. Other AI-related stocks like Adobe also saw significant movement, although Adobe fell in after-hours trading after its third-quarter results.

The broader market was also buoyed by signs of cooling inflation. The Producer Price Index (PPI) rose 0.2% month-over-month, meeting expectations, while on an annual basis, inflation cooled to 1.7%. This data, combined with the recent Consumer Price Index (CPI) report, suggests that inflation may be peaking, potentially leading the Federal Reserve to ease its monetary policy. Traders are now betting on an 85% chance of a 25-basis-point rate cut next week.

Several other stocks made notable moves on Thursday. Walmart hit an all-time high despite a fractional gain, while Moderna plunged 12% after reporting disappointing vaccine sales. Kroger, a retail stock, bounced from its 200-day moving average after reporting better-than-expected earnings but missed sales targets.

Despite the positive market performance, some stocks triggered sell signals. Lazard fell below its 50-day moving average, while Caleres plunged below its 200-day moving average after missing earnings expectations and cutting its guidance.

The strong performance of Nvidia and other AI-related stocks, combined with signs of cooling inflation, points to a potential shift in investor sentiment towards growth and technology sectors. However, the market remains volatile, and investors should exercise caution.

Read More