Dow rises more than 250 points as Wall Street awaits Fed decision: Live updates

Stocks rose Tuesday as the Federal Reserve kicked off its two-day policy meeting. Traders also kept an eye on Nvidia following key announcements from the tech giant.

The Dow Jones Industrial Average gained 231 points, or 0.6%. The 30-stock average was on track for its best day since Feb. 22. The S&P 500 climbed 0.3%, and the Nasdaq Composite advanced less than 0.1%.

The central bank is expected to keep rates unchanged Wednesday. However, a recent slate of worrying inflation reports has investors concerned that the central bank could signal interest rates will remain higher for longer than expected.

Treasury yields dipped broadly, boosting stocks. The benchmark 10-year Treasury yield was down more than 4 basis points at 4.295%.

Chip darling Nvidia climbed 0.3% — recovering from an earlier loss — as investors evaluated the news from its first-ever GTC Conference. CEO Jensen Huang unveiled Nvidia’s latest AI chip, labeled Blackwell, which he touted as a significantly more powerful successor to its chips that power a multitude of AI operations.

Super Micro Computer, a primary vendor for building out Nvidia’s AI servers, dropped more than 9.5% on news of a share offering. Shares have ripped more than 250% higher this year on AI enthusiasm, leading the stock to be added to the S&P 500 on Monday.

In another sign that the recent bull run could be slowing down, bitcoin proxy MicroStrategy dropped more than 8%. The stock had more than doubled in 2024 as bitcoin surged to record highs.

According to Sam Stovall, chief investment strategist at CFRA Research, a “healthy” market digestion after the recent market rally will either happen later than investors expect or be deeper than they anticipate.

“The AI revolution has a long way to go, and therefore whatever decline we’re seeing now is certainly not getting on the end, but rather simply some minor digestion of recent gains,” Stovall said, adding that traders could be “taking profits based on the known in reaction to the unknown.”