NEBIUS, a company closely linked to Nvidia, saw its stock price surge 6.55% during Wednesday's intraday trading session. This significant rally came amidst a broader surge in Nvidia-related stocks, fueled by easing inflation data and reinforced expectations of the Federal Reserve cutting interest rates later this year.
The US Consumer Price Index (CPI) rose at a slower pace than anticipated in December, reigniting hopes that the Federal Reserve will resume its policy easing sooner than previously thought. Swap traders now fully expect a rate cut by July, a stark shift from previous expectations of a rate cut only in September or October after the stronger-than-expected jobs data.
This positive sentiment surrounding potential rate cuts propelled several Nvidia-linked stocks higher, with companies like Nano-X Imaging, Serve Robotics, SoundHound AI, Innoviz Technologies, Aurora Innovation, Cerence, Recursion Pharmaceuticals, Micron, Arm, Illumina, and Nvidia itself experiencing significant gains.
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