Dow Jones Industrial Average cools momentum on tepid Wednesday
- The Dow Jones treaded water on Wednesday, trading within 0.5% of the day’s opening bids.
- Tech stocks continue to rule the risk sentiment roost, bolstering the S&P 500 toward record highs.
- Trump signals more trade tensions, now focused on Spain.
The Dow Jones Industrial Average (DJIA) missed the bullish train on Wednesday, churning chart paper near the 43,000 major price handle as Dow traders ease into a lull after a tense start to the week. Federal Reserve (Fed) Chair Jerome Powell concluded the second of his two-day testimony before the Senate’s financial oversight committee, keeping his commentary firmly on balance and on brand.
US President Donald Trump has turned his trade tariff focus onto Spain as he seeks to get ink to paper on any meaningful trade deals. Trump’s self-imposed deadline before reciprocal tariffs kick back in is fast approaching. The Trump administration has thus far struggled to eke out any trade deals that would represent the windfall to the US economy that he promised in the run-up to April’s “Liberation Day” reciprocal tariffs announcement, which were suspended for 90 days immediately after being announced.
Spain gets latest tariff threats
President Trump announced during his far-ranging comments at the NATO 2025 summit in The Hague that Spain would “pay twice as much”, claiming that US delegates were actively negotiating with Spain. Trump also stated that he would negotiate with Spain directly and reiterated that “Spain is going to pay,” implying that the Trump administration is still working to find a way to make foreign countries pay the import taxes on goods that cross into the US.
The Standard & Poor’s 500 (SP500) major equity index is within 1% of record highs, drawing investor focus as traders wait for meaningful developments in economic data or macro headline flows. Nvidia (NVDA), the de facto shovel-seller in the AI gold rush, is up over 3% on Wednesday and also within inches of all-time highs.
Read more stock news: Nvidia stock nears all-time high after Loop Capital hikes price target
Dow Jones price forecast
The Dow Jones Industrial Average tested its highest bids in three months this week, butr a near-term consolidation zone is keeping the major average pinned close to the 43,000 handle. The Dow has chalked in another bullish technical rejection of the 200-day Exponential Moving Average (EMA) near 41,800. However, top-side momentum could be due for a breather as technical oscillators test overbought territory.
Dow Jones daily chart
Nvidia FAQs
Nvidia is the leading fabless designer of graphics processing units or GPUs. These sophisticated devices allow computers to better process graphics for display interfaces by accelerating computer memory and RAM. This is especially true in the world of video games, where Nvidia graphics cards became a mainstay of the industry. Additionally, Nvidia is well-known as the creator of its CUDA API that allows developers to create software for a number of industries using its parallel computing platform. Nvidia chips are leading products in the data center, supercomputing and artificial intelligence industries. The company is also viewed as one of the inventors of the system-on-a-chip design.
Current CEO Jensen Huang founded Nvidia with Chris Malachowsky and Curtis Priem in 1993. All three founders were semiconductor engineers, who had previously worked at AMD, Sun Microsystems, IBM and Hewlett-Packard. The team set out to build more proficient GPUs than currently existed in the market and largely succeeded by late 1990s. The company was founded with $40,000 but secured $20 million in funding from Sequoia Capital venture fund early on. Nvidia went public in 1999 under the ticker NVDA. Nvidia became a leading designer of chips to the data center, PC, automotive and mobile markets through its close relationship with Taiwan Semiconductor.
In 2022, Nvidia released its ninth-generation data center GPU called the H100. This GPU is specifically designed with the needs of artificial intelligence applications in mind. For instance, OpenAI’s ChatGPT and GPT-4 large language models (LLMs) rely on the H100’s high efficiency in parallel processing to execute a high number of commands quickly. The chip is said to speed up networks by six times Nvidia’s previous A100 chip and is based on the new Hopper architecture. The H100 chip contains 80 billion transistors. Nvidia’s market cap reached $1 trillion in May 2023 largely on the promise of its H100 chip becoming the “picks and shovels” of the coming AI revolution. In June 2024, Nvidia's market capitalization crossed the $3 trillion mark.
Long-time CEO Jense Huang has a cult following in Silicon Valley and on Wall Street due to his strict loyalty and determination to build Nvidia into one of the world’s leading companies. Nvidia neary fell apart on several occasions, but each time Huang bet everything on a new technology that turned out to be the ticket to the company’s success. Huang is seen as a visionary in Silicon Valley, and his company is at the forefront of most major breakthroughs in computer processing. Huang is known for his enthusiastic keynote addresses at annual Nvidia GTC conferences, as well as his love of black leather jackets and Denny’s, the fast food chain where the company was founded.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
