US Consumer Price Index sends NVDA shares up more than 6%

stock has jumped more than 6% premarket after the United States Consumer Price Index (CPI) data showed inflation dropping more quickly than thought. Wall Street consensus had expected the November CPI to come in at 7.3% YoY. Instead, it showed up at 7.1%. This welcome bit of news has led the S&P 500, NASDAQ, and Dow futures to all rally more than 0.7% as it is another sign in favor of the Federal Reserve (Fed) ending its interest rate hikes sooner rather than later.  

with the CPI undershooting inflation, Nvidia is one of the top stocks to benefit from the possibility the Fed will cut its terminal rate and produce a happier dot plot at the Federal Open Market Committee (FOMC) Meeting on Wednesday. Already markets are expecting the steady drumbeat of 75 basis point hikes over the past four meetings to be arrested by a 50-basis point raise this month. Since peaking at 9.1% back in June, headline inflation has fallen for five consecutive months.

NVDA stock has rallied 6.5% on the news in Tuesday’s premarket.

Citi thinks Nvidia may be top benefactor of AI investment after Chat GPT.

NVIDIA TECHNICAL ANALYSIS DAILY CHART:

In daily Nvidia is currently is trading in up channel. Nvidia is currently trading above all SMA.

RSI is in Buying zone which shows bullishness. And stochastic is suggesting up trend.

Nvidia’s immediate support level is at 180.03 & resistance level is at 181.51

HOW TO TRADE IN THIS WEEK

Nvidia is trading in up channel; it will continue to trade upside until any reversal to the downside. So, remain bullish on it. TRADE SUGGESTION: BUY AT 180.03, TARGET AT 188.40, SL AT 175.69