Wall Street turned down after the announcement of the hot ISM index, Nvidia told about its new products

In the United States, the main stock indices opened on Tuesday to a rapid rise, but after the publication of the ISM index of the service sectors, they mostly turned down. The ISM index was stronger than economists’ expectations in December, which puts a damper on the central bank Fed’s rate-cutting cart.

The general index S&P 500 was down 0.1 percent 35 minutes after opening, but the technology-focused Nasdaq Composite was down 0.6 percent. The Dow Jones was up 0.1 percent.

According to the news agency Bloomberg, value stocks in the United States are at their cheapest relative to growth stocks since 2021. When this was the last time about four years ago, value stocks outperformed growth stocks in the following six- and 12-month time periods.

Nvidia, the leading name in the artificial intelligence boom, announced new product releases at the consumer electronics CES trade fair. According to the Reuters news agency, the company’s new products include artificial intelligence tailored to better train robots and cars, as well as new game chips that help create cinematic graphics for video games.

The company also introduced the company’s first desktop computer, called Project DIGITS. However, this machine is intended for computer programmers instead of ordinary consumers.

However, the most interesting opening is related to robotics. On Monday, Huang presented the company’s basic models called Cosmos, which he says make it possible to create photorealistic videos that can be used to train robots and self-driving cars.

Nvidia’s stock was down 2.0 percent.

The ISM index of service industries was published in five years. The index exceeded the expectations of the economist consensus. The score of the index was 54.1 in December, while economists estimated it to have been 53.5. In November, the score was 52.1.

When the score is over 50, economic activity has increased compared to the previous month. Below 50 indicates contraction.

“The ISM report plays a crucial role, as a hot result could threaten the rate hike in the first half of 2025. This would support the Fed’s decision to pause interest rate cuts and increase pressure for interest rates to rise,” Tom Try The Sevens Report commented before the index’s release to Bloomberg.