Nvidia Boosts Tech Stocks Amid Inflation and Rate Hike Fears
Nvidia's strong outlook has revived confidence in AI spending, driving technology shares higher. The S&P 500 gained 0.5% for the week, and the Nasdaq added 0.9%. However, hotter US inflation data and a hawkish message from Federal Reserve Chair Kevin Warsh raised the risk of another rate hike.
The July US PCE inflation rose 3.7% year-on-year, above expectations, while Warsh said the Fed would have 'work to do' if inflation did not return to target. Markets raised the implied probability of a September rate increase to about 60%, from roughly 35% before his speech.
Australian shares still finished the week 0.37% higher at 9,092.3. Technology shares led Friday's move, with Dicker Data surging after stronger earnings tied to AI infrastructure demand.