US stocks open in green: Nvidia leads Nasdaq, S&P higher

US equities moved modestly higher on Wednesday, led by gains in technology stocks, as investors awaited the release of minutes from the Federal Reserve’s most recent policy meeting and looked ahead to key inflation data later in the week.

The S&P 500 advanced 0.2%, while the Nasdaq Composite also rose 0.2%.

The Dow Jones Industrial Average gained 86 points, or about 0.2%, reflecting cautious optimism across markets.

Oil prices and geopolitical risks limit gains

The market’s advance was restrained by rising oil prices, as investors reacted to developments surrounding nuclear talks between the United States and Iran.

US Vice President JD Vance said on Tuesday that Iran had failed to address US red lines during this week’s discussions and warned that military action remained a possibility.

The comments heightened geopolitical uncertainty and supported crude prices, tempering risk appetite in equity markets.

Energy-related concerns added to the sense of caution, as investors balanced improving sentiment in technology shares against broader macro and geopolitical risks.

Nvidia gains on Meta data center plans

Technology stocks provided the main support for the market.

Shares of Nvidia climbed about 2% after Meta Platforms said it plans to use millions of Nvidia’s chips as part of its data center expansion.

The announcement reinforced Nvidia’s central role in large-scale artificial intelligence infrastructure and supported broader enthusiasm around the AI supply chain.

The move followed recent volatility in AI-related stocks, as investors continue to reassess valuations and spending patterns across the sector.

High-profile investments lift individual stocks

Several individual stocks also attracted attention following disclosures of major investor activity.

Shares of The New York Times Company rose about 3% after a regulatory filing showed that Berkshire Hathaway had taken a new position in the publisher.

Meanwhile, Amazon gained around 1% after filings revealed that Pershing Square Capital Management, led by Bill Ackman, increased its stake in the company by 65% during the fourth quarter.

Amazon has now become the fund’s third-largest holding.

The move followed the stock’s recent rebound after snapping a nine-day losing streak.

In the semiconductor space, Micron Technology advanced after Appaloosa Management, run by David Tepper, disclosed a larger position in the company.

Software sector remains under pressure

Despite the broader gains, weakness persisted in parts of the technology sector.

The software industry, which has been under pressure amid concerns about disruption from artificial intelligence tools, declined in the previous session and continued to weigh on sentiment.

Investors have been reassessing business models and valuation multiples for traditional software providers as AI adoption accelerates.

This divergence within technology reflects the uneven impact of AI, with hardware and infrastructure providers benefiting more directly than some application-focused companies.

Focus on Fed minutes and inflation data

Attention is now centred on monetary policy signals.

Investors are closely watching for the release of minutes from the January meeting of the Federal Reserve, which are expected to provide further insight into policymakers’ views on inflation, growth, and the future path of interest rates.

The next major catalyst for markets will likely be Friday’s personal consumption expenditures price index, the Fed’s preferred measure of inflation.

The report is expected to play a key role in shaping expectations around potential rate cuts later in the year.