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Nvidia Corp. acquires Hugging Face for $13 billion as Wall Street rallies on AI demand

Nvidia Corp. announced a $13 billion acquisition of the artificial intelligence platform Hugging Face. The deal is expected to bolster Nvidia Corp.'s position in the AI market, where its high-end chips serve as primary building blocks. Wall Street saw a positive trend as big technology and communication services stocks rallied. The S&P 500 rose 1.1%, the Dow Jones Industrial Average gained 1.2%, and the Nasdaq composite closed 1.4% higher. This growth was largely driven by strong demand for AI-related technologies. Snowflake Inc. reported quarterly results that exceeded analyst estimates, with the company noting that artificial intelligence remains a strong driver for its business. Broadcom Inc. also reported results that beat estimates, though its stock price fell slightly due to a lower revenue outlook. Simultaneously, bond yields showed signs of stabilization. The 10-year Treasury yield dropped to 4.77% from 4.79% late Wednesday. Federal Reserve governor Christopher Waller indicated that the central bank may keep interest rates unchanged at the next meeting if inflation data remains stable. Oil prices remained volatile due to escalating tensions between the U.S. and Iran. Brent crude settled at $95.52 per barrel, while U.S. crude edged up 0.3% to $91.30 a barrel.

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