Nasdaq Gains as Yields Ease After Fed Rate Hike
The Nasdaq advanced after the Federal Reserve’s rate move as Treasury yields eased, drawing investors back into megacap technology names led by Nvidia and Amazon.
The buying came a day after the Fed raised rates for the first time in three years, but traders focused on the immediate relief in borrowing costs rather than the policy tightening itself. A weekly labor report showing a resilient jobs market helped reinforce the view that the economy can absorb higher rates, at least for now, while easing yields supported valuations for long-duration growth stocks.
Nvidia was among the biggest gainers in the blue-chip space, extending its role as a key barometer for the artificial intelligence trade. The chipmaker’s shares closed at $222.27, up from $219.34 the prior day, with volume nearly doubling to 189.7 million shares, a sign that institutional money is still using the stock as the main AI proxy despite recent volatility. By conventional technical measures, Nvidia remains above its 200-day moving average of roughly $198, even after its earlier pullback from the year’s highs.
Amazon also firmed, closing at $253.71 from $251.19, after an Amazon deal with Generac helped lift several names tied to the AI buildout and data-center power supply chain. The move underscores how investors are widening exposure beyond semiconductors into the infrastructure needed to support higher cloud and AI spending.
The market tone was more constructive for tech than for the broader tape, with the S&P 500 still showing neutral readings in Adalytica’s trade signals while the dollar remains extremely strong by those proprietary measures. That combination points to a market still balancing tighter policy against hopes that earnings and AI-related capital spending can keep leading equities higher.
Nasdaq-listed shares in the group were also helped by a bid in growth stocks more broadly, while the exchange operator Nasdaq Inc. ended at $93.54, up from $91.31, as trading activity picked up across the sector. The next test for the rally is whether yields keep drifting lower and whether upcoming economic data confirm that the Fed can keep tightening without derailing demand.
| Entity | Gains | Losses |
|---|---|---|
| Nasdaq/tech investors | ▲Lower-yield valuation support | ▼Rate-sensitive bearish bets |
| Nvidia | ▲AI leadership bid | ▼Traders waiting for a deeper pullback |
| Amazon | ▲AI/infrastructure spillover demand | ▼Short-term skeptics on spending costs |
| Generac and AI-linked suppliers | ▲Deal-driven momentum | ▼Counterparties exposed to slower capex |