Fed’s Interest-Rate Cut May Boost Nvidia in the Long Run

  • Nvidia shares down 0.6% to $117.18 ahead of the opening bell
  • Federal Reserve’s interest-rate cut may benefit Nvidia in the long run
  • Nvidia stock has historically gained 118% on average after previous rate cuts

Nvidia shares dipped slightly on Friday, despite contributing to the S&P 500 index hitting a new record high. The chip designer’s stock fell 0.6% to $117.18 before market open, while S&P 500 futures dropped by 0.2%. Nvidia had closed the previous session up 4%, helping the benchmark gauge reach an all-time high for the first time in two months. The moves came as investors considered the impact of the Federal Reserve’s interest-rate cut on the market. Historically, lowering borrowing costs has been good news for Nvidia; since its listing in 1999, the stock has increased by an average of 118% within 12 months following three previous rate cuts.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Nvidia’s stock performance and its relation to the Federal Reserve’s interest-rate cut, as well as comparing it with other chip stocks. It does not contain digressions, unnecessary background information, or personal opinions. The reporting is not exaggerated or misleading.
Noise Level: 3
Noise Justification: The article provides relevant information about Nvidia’s stock performance and its relation to the Federal Reserve’s interest-rate cut but lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or new knowledge for readers.
Public Companies: Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), Qualcomm (QCOM)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Nvidia shares, S&P 500 index, Advanced Micro Devices, Broadcom, Qualcomm
Financial Rating Justification: The article discusses the impact of Federal Reserve’s interest-rate cut on Nvidia shares and other chip stocks, as well as its effect on the S&P 500 index.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
Move Size: No market move size mentioned.
Sector: Technology
Direction: Down
Magnitude: Small
Affected Instruments: Stocks

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