A notable rise in technology on Wall Street: Nvidia is up more than eight percent

A notable rise in technology on Wall Street: Nvidia is up more than eight percent

So far, August has been a turbulent month for Wall Street.

A rebound was expected in pre-trading, and when the stock market opened, stocks were pointing higher in all three major indices. It’s going to be a particularly strong day for the tech sector on Wall Street.

This is what the three main indicators looked like at 22:00 Norwegian time:

  • The broad S & P 500 rose 0.6 percent
  • The Dow Jones Industrial Average fell 0.1 percent
  • The Nasdaq Technology Index rose 1.5 percent

Last week ended weakness in US stocks after renewed concerns about interest rates in the market. Major indices have fallen steadily for four consecutive days. On Monday, there was optimism, at least for the technology sector.

The technology recovery gained strength during the evening, led by giants Nvidia and Tesla, which rose 8.5 percent and 7.3 percent, respectively.

The first shows results on Wednesday this week, and there’s a lot of excitement about how things are going with the US computer chip maker. The share price rose as a result of many brokerage firms adjusting their target price before the figures were released.

The highest level in 16 years

Recently, the US government’s “long” interest rates, that is, interest on longer-term US government bonds, have risen sharply.

US 10-year bond yields, often referred to as the most important interest rate in the world, are now at their highest level in 16 years. On Monday, the interest rate rose to 4.3 percent. Interest rates only started to rise on Wednesday last week when the US central bank published its interest rate report after its July interest rate meeting. Both the stock markets in the US and the rest of the world fell instantly.

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This interest rate affects almost all interest rates worldwide, including the interest rate set by Norges Bank, and is therefore also important for nervous Norwegian loan customers.

The reason behind the sharp increase in interest rates is driven by an increase in the real interest rate, which has now risen to nearly 2%, economists at Handelsbanken write in a report on Monday morning.

– There are several reasons for this rise, but an important one is that strong major figures in the US keep pouring in. Which may indicate that the period of high growth of basic prices will continue, she says.

Powell’s letter

On Thursday of this week, investors will set their sights on Jackson Hole, where the US central bank will hold a summit with other central banks. The annual economic summit is held in Wyoming, where top central bankers, economists and government officials will discuss monetary policy.

The meeting starts on Thursday and ends on Saturday.

High interest rates and inflation, which have taken hold more strongly than both economists and the market had expected, are the main theme. The highlight will be central bank chief Jerome Powell’s speech on Friday, which could prove decisive for the markets. Meanwhile, European Central Bank President Christine Lagarde will deliver a speech on Friday.

This is why Stordalen never moves to Switzerland

Hotel owner Peter Stordalen in discussion with Finance Minister Trygve Slägsvold Vedom during Arendal Week 2023: – It was Norway that gave me the opportunity to build what I built.



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Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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