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Five things to know before the stock market opens on Thursday – NBC New York

  • Nvidia had another spectacular quarter.
  • Federal Reserve members are increasingly concerned about the lack of progress in fighting inflation.
  • Amazon is giving Alexa an AI upgrade.

Here is the most important news investors need to start their trading day:

1. Down, but not for long

Stocks fell on Wednesday as investors worried about persistent inflation following the latest release of minutes from the Federal Reserve’s most recent meeting (more on that below). The Dow Jones Industrial Average fell 201.95 points, or 0.51%, and had its worst session of the month. Meanwhile, the S&P 500 fell 0.27% and the Nasdaq Composite fell 0.18%. But things were looking up Thursday morning as futures linked to all three indexes rose, with Nasdaq-100 futures rising 0.8% as Wall Street rode momentum from market leader Nvidia. Follow live market updates.

2. It all comes back to Nvidia

The wins keep coming for Nvidia. Shares of the chipmaker rallied and surpassed $1,000 for the first time in extended trading after the company reported fiscal first-quarter results that topped analyst estimates. The chipmaker reported a whopping 262% increase in sales and announced a 10-for-1 stock split. And it shows no signs of slowing down, as its revenue more than tripled during the quarter and its data center business grew more than 400% compared to the previous year. Nvidia’s strong results suggest that demand remains strong for its AI chips and for the AI ​​rebound in general.

3. Inflation, inflation, inflation

Federal Reserve Bank Chairman Jerome Powell announces that interest rates will remain unchanged during a press conference at the bank's William McChesney Martin Building on May 1, 2024 in Washington, DC.
Chip Somodevilla | fake images

Federal Reserve Bank Chairman Jerome Powell announces that interest rates will remain unchanged during a press conference at the bank’s William McChesney Martin Building on May 1, 2024 in Washington, DC.

Federal Reserve officials are increasingly concerned about their progress – or lack thereof – on inflation. In the Federal Reserve’s April 30-May 1 minutes, released Wednesday, members indicated they lacked confidence in cutting interest rates. They voted unanimously to keep the benchmark short-term borrowing rate within the 5.25%-5.5% range, where it has been since July 2023. Although participants noted that inflation declined over the past year, in Ultimately there was “a lack of further progress” in recent months toward the committee’s 2% inflation goal, according to the summary of the minutes. The minutes come after Fed Governor Christopher Waller said Tuesday that he needs to see “several months” of progress before voting to cut rates.

4. Alexa lights up

This photo taken on June 14, 2023 shows the logo of the American company Amazon group at the Vivatech technology startup and innovation fair at the Porte de Versailles exhibition center in Paris.
Alain Jocard AFP | fake images

This photo taken on June 14, 2023 shows the logo of the American company Amazon group at the Vivatech technology startup and innovation fair at the Porte de Versailles exhibition center in Paris.

Amazon is giving Alexa an upgrade. The decade-old voice assistant will now be enhanced with generative artificial intelligence in a bid by the company to make it more conversational, two sources familiar with the matter told CNBC. Amazon also plans to charge users a monthly subscription fee with the offer, and it will not be included in Amazon Prime subscriptions. Such an update, coming this year, may position the tech and retail giant to better compete with companies like Google and OpenAI, which launched AI-powered chatbots and have since announced similar AI-powered voice features.

5. It’s electric

The Chevrolet Equinox EV on display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC

The Chevrolet Equinox EV on display at the New York International Auto Show on March 28, 2024.

General Motors has officially launched an all-electric version of its iconic Chevrolet Equinox, which has been part of the company’s lineup for two decades. The EV crossover has gone on sale with higher-priced models, starting at approximately $43,000 to $51,100. The base model Equinox LT is expected to launch later this year and will cost around $35,000. GM’s move comes as demand for electric vehicles has been slower than expected, making this latest launch a test to see if the company’s new “Ultium” electric vehicle technologies and overall adoption of Electric vehicles in the mass market will really stick the landing.

— CNBC’s Hakyung Kim, Samantha Subin, Kif Leswing, Jeff Cox, Kate Rooney and Michael Wayland contributed to this report.

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