News

Treasuries edged lower ahead of a widely expected interest-rate cut by the Federal Reserve, with traders focused on comments by Chair Jerome Powell for clues on the central bank’s next move. Yields on 10-year notes rose two basis points to 3.99% after falling the previous two sessions, while monetary policy-sensitive two-year notes held steady around 3.49% Wednesday morning.

Traders have fully priced a quarter-point rate reduction when the Fed announces its decision at 2 pm in Washington, with another likely in December. But they will be focused on Powell’s remarks to determine their next move at a time when US policymakers have grown increasingly divided on the outlook for interest rates.

US stocks rose to record levels on Wednesday, boosted by tech names, ahead of the Federal Reserve’s interest rate decision.

The Nasdaq Composite climbed 0.6%, and the S&P 500 traded up 0.3%. The Dow Jones Industrial Average advanced 281 points, or 0.6%. All three leading U.S. indexes scored new all-time intraday highs on the trading day.

The Bank of Canada cut interest rates as it sees damage from US tariffs persisting, but signaled that borrowing costs are roughly at the right place as long as its forecasts materialize.

Officials led by Governor Tiff Macklem lowered the benchmark overnight rate by 25 basis points for a second consecutive meeting on Wednesday, bringing the policy rate to 2.25%, the lowest since July 2022.

The central bank also slashed growth projections, painting a downbeat picture of the economy. In prepared remarks, Macklem called the trade conflict with the US a “structural transition” that has “diminished Canada’s economic prospects.”

Nvidia Corp.’s shares extended their dramatic ascent to a record after US President Donald Trump said he’ll discuss the chipmaker’s Blackwell artificial intelligence processors with Chinese leader Xi Jinping, putting the company on track to become the first $5 trillion business by market value.

“We’ll be speaking about Blackwells,” Trump said Wednesday, ahead of his highly anticipated meeting with Xi later this week. He touted the chip as “super duper” and said Nvidia Chief Executive Officer Jensen Huang recently brought a version of the accelerator to the Oval Office.

Donald Trump said he expects to lower tariffs the US has imposed on Chinese goods over the fentanyl crisis and speak with China’s Xi Jinping about Nvidia Corp.’s flagship Blackwell artificial intelligence chip, as leaders of the world’s biggest economies seek to ease tensions in a meeting on Thursday.

“I expect to be lowering that because I believe they’re going to help us with the fentanyl situation,” Trump told reporters on Air Force One as he headed to South Korea on Wednesday, a day before he’s slated to meet with China’s president.

The meeting between the two leaders will take place at 11 a.m. local time in Gyeongju, South Korea, the White House announced.

The Nasdaq Composite and the S&P 500 reached new records on Wednesday morning.

The tech-heavy index gained about 0.7% just after 9:30 a.m. ET, and the broad market index advanced 0.3%, while the Dow Jones Industrial Average climbed 178 points, or about 0.4%.

Shares of Nvidia rose more than 4% Wednesday, making the tech giant the first company to cross the $5 trillion market value threshold.

The extraordinary milestone reflects a remarkable rise for the company, which has evolved from a niche video game processor to an integral player in the artificial intelligence boom.

Nvidia’s stock, which closed up 5% Tuesday, has climbed more than 50% year-to-date.

The latest move higher comes shortly after CEO Jensen Huang said Nvidia expects $500 billion in AI chip orders and announced plans to build seven new supercomputers for the US government.

US stocks rose Wednesday after the major averages hit fresh records ahead of the Federal Reserve’s interest rate decision.

The Nasdaq Composite hit a fresh record high, climbing 0.6%. The S&P 500

gained 0.3%, also hitting a record, while the Dow Jones Industrial Average

advanced 200 points, or 0.4%.

Nvidia shares were up more than 4%, putting the chipmaker’s market capitalisation above $5 trillion. It would be the first time a US company would reach such a valuation.

US Treasuries slipped across the curve as traders cautioned that any hawkish remarks from Fed Chair Jerome Powell could spark fresh volatility. Yields have largely held in a narrow range in recent days amid a data lull caused by the US government shutdown.

The 10-year yield rose one basis point to 3.99%, while the dollar snapped a two-day losing streak.

“The decisive factor will be Powell’s press conference and how he assesses the current situation with regard to the labor market, because we are not getting any real data at the moment due to the government shutdown,” said Unicredit strategist Christian Stocker. “The economy will continue to develop solidly if we get some interest rate cuts next year. That would certainly be very, very decisive for the stock market.”

US mortgage rates fell to a fresh one-year low, encouraging more homeowners to refinance and drawing prospective buyers into the market.

The contract rate on a 30-year mortgage fell 7 basis points to 6.3% in the week ended Oct. 24, according to Mortgage Bankers Association data released Wednesday. The group’s measure of refinancing jumped to the highest level since mid-September, and the index of home-purchase applications rose for the first time in five weeks.

Technology stocks kept driving global equities higher as hopes for a breakthrough by Nvidia Corp. in China reinforced optimism about artificial intelligence ahead of a likely Federal Reserve interest-rate cut.

The S&P 500 looked set to extend its record rally, with futures up 0.3%. Nvidia Corp. rose more than 3% premarket, setting the AI powerhouse on course to become the first public company worth $5 trillion. US President Donald Trump raised expectations of a deal allowing Nvidia to export a version of its Blackwell processor to China.

Major brokerages anticipate that the Fed will deliver 25-basis point cuts at each of its two remaining meetings this year, following the widely expected reduction in September, according to Reuters.Market participants widely expect another 25-basis-point rate cut this week as the Powell-led Fed continues to balance inflation control with growth support.The meeting and Powell’s press conference will be broadcast live on the Federal Reserve’s official website (federalreserve.gov) and its YouTube channel (@federalreserve/streams).

US stock futures were mixed on Wednesday after the major averages hit fresh records ahead of the Federal Reserve’s interest rate decision. S&P 500 futures gained 0.2%, while the Nasdaq 100 futures rose 0.3%. Dow Jones Industrial Average futures fell by 107 points, or 0.2%.

Nvidia shares were up more than 3% in the premarket, putting the chipmaker on pace to reach a market capitalization of $5 trillion. It would be the first time a US company would reach such a valuation.

Shares of Nvidia rose more than 3% in premarket on Wednesday, putting the tech giant on track to become the first company to cross the $5 trillion market value threshold.

The extraordinary milestone would reflect a remarkable rise for the company, which has evolved from a niche video game processor to an integral player in the artificial intelligence boom.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.