AMZN
NVDA
Stock Market Overview
On Wednesday, the S&P 500 recorded a modest gain for the second consecutive day, climbing 0.16%.
The Dow Jones Industrial Average ended nearly unchanged, up just 0.04%. In contrast, the Nasdaq Composite rose 0.49%, driven by gains in technology stocks.
Amazon shares surged by 3.9%, reaching an all-time high and pushing its market cap above $2 trillion for the first time. However, outside of major tech stocks, the market showed signs of sluggishness, leading to speculation that the 2024 rally, heavily driven by Nvidia, might be losing steam.
Amazon's New Budget Storefront
Following CNBC, Amazon (NASDAQ: AMZN) plans to launch a budget storefront featuring low-cost apparel, home goods, and other items.
This move aims to counteract the growing influence of Chinese e-commerce sites Temu and Shein. The new section will allow Chinese sellers to ship directly to U.S. consumers, with a target delivery window of 9 to 11 days. Amazon pitched the storefront as a cost-saving measure for its Chinese sellers, aiming to enhance competitiveness in the U.S. market.
Nvidia's AI Market Dominance
At an annual shareholder meeting, Nvidia (NASDAQ: NVDA) CEO Jensen Huang outlined the company's strategy to maintain its leadership in the artificial intelligence chip market.
Nvidia, which holds more than 80% of the AI chip market share, has seen its stock soar by approximately 210% over the past year. Huang emphasized that Nvidia has evolved into a data center-focused company, seeking to create new markets for its AI technologies. He highlighted the concept of a "virtuous circle," where having the most users enables continuous improvements that attract even more users.
Economic Data and Presidential Debate
Investors are in a holding pattern ahead of key U.S. economic data and the upcoming Presidential debate. Thursday will see the release of weekly jobless claims, durable goods orders, pending home sales, and the final reading of the first quarter GDP.
However, the main focus will be on Friday's PCE price index, the Federal Reserve’s preferred measure of inflation.
Additionally, markets are tense ahead of Thursday's first Presidential debate of the year between Joe Biden and Donald Trump.
Crude Oil Prices Rebound
Crude oil prices rebounded on Thursday after an early dip following a surprise increase in U.S. stockpiles. By 06:00 ET, U.S. crude futures (WTI) had risen 0.6% to $81.37 per barrel, and Brent crude climbed 0.6% to $84.95 per barrel.
The U.S. Energy Information Administration reported a 3.6 million barrel increase in crude oil stocks last week, contrary to market expectations of a 2.6 million barrel draw. Additionally, gasoline inventories rose by 2.7 million barrels, indicating weak fuel consumption despite the travel-heavy summer season.
