Finance

Retail investors have demonstrated unprecedented interest in Nvidia throughout 2024, with individual traders investing approximately $30 billion into the semiconductor company's stock, according to Vanda Research data as of December 17. The chipmaker has attracted nearly twice the net inflows from retail investors compared to the SPDR S&P 500 ETF Trust (SPY), positioning it to surpass Tesla as the most popular retail investment of the year. The company's stock has gained over 180% in 2024, cementing its position among companies with market capitalizations exceeding $3 trillion and becoming the second-most valuable company in the United States. Individual investors like Michael MacGillivray, 25, from Michigan, have been drawn to Nvidia's dominant position in artificial intelligence. "Whenever you look at AI, it's like, all the roads lead to Nvidia," said MacGillivray, who has invested thousands of dollars in the company this year. […]

The Federal Reserve is set to lower borrowing costs, implementing a quarter-percentage-point reduction that brings the benchmark policy rate to the 4.25%-4.50% range. This move represents a significant shift from the tight monetary policy established to combat inflation that began in 2021. The anticipated rate cut comes with considerable uncertainty. Inflation remains above the Fed's 2% target, and the economy continues to grow faster than initially expected. The potential economic impacts of new administration policies add further complexity to the Federal Reserve's decision-making process. Investors are now more conservative in their rate cut predictions, expecting potentially only half a percentage point reduction next year. The Fed's upcoming projections and Chair Jerome Powell's press conference will provide crucial insights into the central bank's economic outlook. In September, Fed officials had projected cutting the benchmark rate to around 3.4% by the end […]