from Nvidia work against weakness elsewhere in the market. In the latest example of how good news for the economy isn’t necessarily good for Wall Street, strong economic reports raised worries about interest rates staying high.
Concern has grown that Wall Street’s frenzy around the potential for AI has created a bubble where prices have soared too high and expectations have grown too tough. But the continued skyrocketing growth for Nvidia, which has become one of Wall Street’s most influential stocks, helped lift others only further.
But the majority of stocks were falling on Wall Street as pressure weighed on them from rising yields in the bond market. Reports suggesting the U.S. economy remains strong forced traders to rethink bets about when the Federal Reserve could offer financial markets relief by lowering interest rates. Hopes are still high for at least one cut to rates this year. But traders pulled some back some of those bets after a preliminary report on Thursday suggested growth in U.S. business activity is running at its fastest level in more than two years. The report from S&P Global said growth improved for businesses not only in the services sector but also in beaten-down manufacturing.