On Wednesday, stocks displayed potential instability, specifically within the tech sector. This instability stemmed from fears of additional trade restrictions on AI chips. The stock market also focused on the anticipated remarks by Federal Reserve Chair Jerome Powell.
Futures associated with the Nasdaq Composite (^IXIC) decreased considerably, plummeting 0.45%. S&P 500 (^GSPC) Futures also experienced a fall of 0.19%, while Dow Jones Industrial Average (^DJI) futures remained rather consistent.
Nvidia led tech declines following The Wall Street Journal’s report of the Commerce Department’s potential imposition of extra constraints on AI chip exports to China.
In contrast, a collection of strong economic data boosted a stock rally on Tuesday. This rebound from a recent downturn has kept major benchmarks on track for a remarkably strong performance as we approach the mid-year mark of 2023.
The stock market will closely monitor comments made by Federal Reserve Chair Jerome Powell at an ECB event later today. This is due to the anticipation of potential hints at the central bank’s subsequent plans following the presentation of data that supports the argument for additional hikes.
In the context of an evidently resilient US economy, investors will keenly observe Powell’s participation in an ECB forum on Wednesday morning. They are in search of indications on the Federal Reserve’s forthcoming measures.
