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Dow Jones Dips as Traders Brace for Fed News

Key Points

• Investors reacted to the latest Nvidia news
• Another factor was anticipating Jerome Powell's speech.
• Many experts expect him to sound hawkish about interest rates

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Trends Shaping the Market

Nvidia's Acquisition

AMD purchased ZT Systems in an effort to increase its offerings of mobile graphics processors. Intel and Nvidia are two of its primary PC and server chip rivals.

Anticipation for Powell's Speech

Jerome Powell, Chair of the Federal Reserve, will speak on Friday to provide insights about the economy and interest rate policy. Since June, the Fed has enacted three consecutive 0.75% interest rate increases in an effort to curb inflation.

Market Reaction to Powell's Pending Speech

Dow Jones Industrial Average sank on Monday in response to investors' cautious approach before Powell's speech. Powell is widely anticipated to restate his dedication to battling inflation even if it entails a period of slower economic development.