Stocks Join Bonds in Falling as Fed-Cut Bets Wane: Markets Wrap
- Business activity expands most in two years, prices pick up
- Nvidia stock surges as sales forecast delivers on AI hopes
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Stocks and bonds retreated as data showing US business activity accelerated amid a pickup in inflation reinforced bets the Federal Reserve will remain on hold.
The S&P 500 dropped below 5,300, with all megacaps down except Nvidia Corp. The giant chipmaker jumped over 9% on a solid outlook, topping the historic $1,000 mark. The Dow Jones Industrial Average lost 1.5%, led by a plunge in Boeing Co. — which said it will continue to burn cash this quarter and in the full year. Treasury yields climbed, with the move led by shorter maturities.