Markets Open Higher with Nvidia Focus and Fed Changes

Trading commenced today at the Nasdaq as major U.S. stock averages opened higher. The Dow, S&P 500, and Nasdaq all showed fractional gains with the S&P 500 and Nasdaq up approximately 0.3% and 0.4%, respectively, while the Dow was higher by 0.1%. Bond market activity indicated a rise in 10-year yields, hovering around 3.7%. Tech stocks were particularly in focus, especially Nvidia, which has led recent market fluctuations. Despite falling over 10% in the past week, Nvidia remains a significant player in the tech sector, but its influence on the broader market may be diminishing according to Scott Croner, head of U.S. Equity Strategy at Citi Group. As investors reassess buying opportunities amidst potential economic weakness, the labor situation becomes a key area of concern. Croner suggests that the S&P 500 could see earnings growth of around 20% in 2025 due to growth in core tech sectors, despite recent pressures. Sentiments also revolve around the upcoming presidential debate today, with economic policies likely taking center stage. In another segment, the EU announced landmark legal rulings against tech giants Apple and Google in relation to tax and preferential treatment in search results, which could impact their financial outlooks significantly. Overall, market sentiment is optimistic but cautious, shaped by regulatory changes and earnings expectations, particularly in the tech sector, as the Fed prepares its next moves.