Stocks threw a rager on Wednesday even though the Federal Reserve decided to keep interest rates chilling in the freezer.

The S&P 500 jumped almost 1.5%, while the Nasdaq shot up about 2.4%. Even the Dow Jones joined the fun, adding 92 points. At its peak, the Dow was up over 450 points before cooling off a bit.

Fed Chair Jerome Powell, in true "BRRRRRRRR" meme style, hinted during his press conference that if inflation data continues to play nice, they might start cutting rates as soon as September.

Mega-cap tech stocks, like Apple, Meta, and Amazon, all saw gains. One Magnificent 7 stock had an incredible day, thanks to positive news from their rival. More on that in just a moment.

Not everyone is going to bed happy, though. Microsoft dipped 1% due to some cloud revenue blues, and Humana fell 10.5% after an analyst played Johnny Raincloud on their stock.

Paul Pelosi Bought 20,000 NVDA Shares Before Today’s 13% Spike

When I found out Nancy Pelosi’s husband, Paul, scooped up 20,000 shares of Nvidia in June and July, I knew I should've thrown my life savings into it too. Of course, I'm joking—or am I? Because guess what? Nvidia's shares just popped 13% today. Coincidence? I think not. But I’m not gonna bore you with another one of my conspiracy theories.

We all know that in the realm of artificial intelligence, Nvidia is the undisputed heavyweight champion. Seriously, if the stock market were the UFC, Nvidia would be Jon Jones—minus the controversies and cocaine. Their chips are the magical brains behind AI servers. 

So, what sparked today’s 13% surge in Nvidia’s stock? Let’s just say it got some high-fives from Microsoft and AMD. It all started when Microsoft’s CEO, Satya Nadella, and CFO, Amy Hood, casually mentioned they spent $19 billion on capital expenditures last quarter, with 60% of that going into hardware. That’s like buying an island just because you can! Investors took this as a neon sign that Nvidia's AI chip sales are only going up.

The next catalyst was when Morgan Stanley’s analysts wrote an article calling it a "top pick." They’re newest report brushed off worries about competition, export controls, and supply chain mishaps like Nvidia has no obstacles in front of them. Their message? “Chill out, folks, these problems will fade soon enough. Nvidia is going to the moon.” And those upcoming “Blackwell” chips from Nvidia? They’re inviting more hype than a new iPhone launch, set to outshine the current H100 series like the hottest tech toy on Christmas morning.

A lot of this excitement also ties back to AMD’s latest earnings report, which was a bigger hit than the new Deadpool/Wolverine movie. Their Instinct MI300 chip alone pulled in over a billion dollars in Q2 2024 and their data center revenue soared to a record $2.8 billion, a jaw-dropping 115% increase year-over-year.

So what should you take from the 12% jump today? Nvidia still reigns supreme as the #1 AI stock on the planet. Not only has it doubled in 2024 and shot up 500% since ChatGPT’s debut in November 2022, but it just goes to show that when a politician makes a purchase inside their portfolio, good news is coming soon.

Stock.News has positions in Microsoft, Amazon, Apple, and Meta.