Nvidia in focus after Fed raises rate cut hopes

Traders are breathing easier heading into this week after Federal Reserve Chair Jerome Powell indicated that interest rate cuts are coming. The next test for the stock market will be a read on what’s been driving gains for the past few years: artificial intelligence euphoria.

Sentiment was weak heading into Friday, with the S&P 500 Index falling for five straight sessions, its longest losing streak since January, as Wall Street pros pulled back on bets that the Fed was about to reduce borrowing costs. Powell’s comments halted those concerns, sending the S&P 500 soaring to its best day since May and less than two points from a record.