Market Mixed as Nvidia Soars, BP Eyed for Mega-Merger, and Trump Targets Powell
Market Mixed as Nvidia Soars, BP Eyed for Mega-Merger, and Trump Targets Powell
US stock markets navigated a turbulent Wednesday, closing mixed despite significant individual company movements and high-stakes political developments. While the tech-heavy Nasdaq Composite edged higher, propelled by Nvidia’s continued ascent, the Dow Jones Industrial Average slipped, and the S&P 500 hovered just below its all-time high, reflecting a cautious investor sentiment.
A major focus for investors was Federal Reserve Chair Jerome Powell’s second day of congressional testimony. Powell reiterated the central bank’s commitment to a data-driven approach, emphasizing that the inflationary impact of new tariffs remains an open question. He noted that while inflation is “in a really good place” currently, “there will be some inflation from tariffs coming, not yet, but over the course of the coming months.” Markets are now keenly awaiting Friday’s Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation gauge, for further clarity on the path of monetary policy.
Adding a layer of political intrigue, President Trump, speaking from the Netherlands, publicly stated he is actively considering replacements for Powell, calling the current chair “terrible” and noting his term expires in May 2026. These comments landed simultaneously with Powell’s ongoing testimony, underscoring the persistent pressure on the Fed to consider interest rate cuts.
In individual stock news, Nvidia (NVDA) continued its remarkable run, surging 4% to secure another record closing price. The chipmaker’s ascent was further fueled by a Loop Capital analyst raising their price target to an ambitious $250, projecting Nvidia’s market cap could reach $6 trillion. Elsewhere in tech, BlackBerry (BB) shares jumped 10% in premarket trading after the cybersecurity firm reported better-than-expected fiscal first-quarter revenue and raised its outlook, even returning to GAAP profitability. Reddit (RDDT) also saw a premarket bounce, extending a strong month-long rally driven by new AI tools and its increasing visibility in Google’s AI overviews. However, not all tech fared well, with Tesla (TSLA) shares falling over 5% as its European Union sales declined for the fifth consecutive month.
The corporate landscape also saw significant M&A buzz and sector-specific challenges. BP (BP) stock briefly soared as much as 8% following a Wall Street Journal report of early acquisition talks with rival Shell (SHEL) in a potential $80 billion landmark deal. BP later pared gains after Shell issued a non-committal statement. Meanwhile, General Mills (GIS) shares fell over 3% after the food giant delivered a weaker-than-expected full-year profit forecast, citing a notable pullback in consumer spending on snacks and refrigerated baked goods.
Innovation also made headlines, as QuantumScape (QS) shares rocketed 35% premarket following the announcement of a manufacturing breakthrough for its solid-state batteries, a crucial step towards commercializing next-generation EV power. As investors digest these varied developments—from central bank signals and political pressures to corporate earnings and ground-breaking tech innovations—the market remains a complex tapestry of opportunity and caution.
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