U.S. stocks are falling and bond yields are rising as traders keep an eye on new economic data

• American stock markets traded lower on Wednesday.

• Shares of Nvidia faltered after rallying in the previous session.

• The major averages fell, while bond yields rose.

U.S. stocks fell on Wednesday, with the major averages falling as bond yields rose, while Nvidia shares wobbled and investors looked to new economic data.

Nvidia shares fell as much as 1.2% in early morning trading before paring losses, trading up about 0.25% shortly after the opening bell.

The chipmaker lost more than $400 billion in three days before recovering during Tuesday’s session.

The decline has given pause to traders who have weathered the artificial intelligence boom all year, and casts doubt on how much room is left as the market heads into the second half of 2024.

“To date, investors view the NVIDIA sell-off as an opportunity to gain additional exposure,” Morrison said in a note on Wednesday. “Let’s see if investors remain so convinced of the chip designer’s future that they drive it to new highs. If so, it will restore the company’s status as a bullish indicator in the stock market. If not, further weakness could easily sour sentiment. generally, even if value is perceived outside the technology leaders.”

Traders are also waiting for PCE inflation on Friday. The measure of consumer prices is the Federal Reserve’s favorite inflation gauge. Dow Jones economists expect personal consumption inflation to rise 2.6 percent in May, slightly less than the 2.7 percent price increase recorded in April.

Fed commentators this week further tempered the market’s bullishness on rate cuts this year. On Tuesday, Fed Governor Michelle Bowman noted that a rate hike was still on the horizon if inflation doesn’t cooperate.

Treasury yields rose on Wednesday, with the 10-year bond yield rising six basis points to 4.3%.

This is the position of the US indexes shortly after the opening bell of 09:30 on Wednesday:

In commodities, bonds and crypto:

• West Texas Intermediate crude was 0.11% higher at $80.92 per barrel. Brent crude, the international benchmark, rose 0.19% to $84.39 per barrel.

• Gold fell 0.98% to $2,296 an ounce.

• The yield on ten-year government bonds rose by six basis points to 4.302%.

• Bitcoin traded 0.72% higher to $61,544.

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