Here is a short report in the Barron s Daily on April 2 2 , 2 0
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Here is a short report in the Barrons Daily on April Chip maker Nvidia, which until recently was having a great run on the back of artificial intelligence hype, is hurt by interest rates as well. Not because theyre making it more expensive for companies to borrow moneythats hurting smaller cap firms more than the big caps now. Rather, its because higher interest rates make bonds relatively more attractive. The more investors can make from a surefire return on loan, the less likely it is theyll take a chance on a stock thats not guaranteed to keep moving higher.
Draw a supplydemand graph for Nvidia shares and another one for the bonds market. Clearly label the horizontal axis and the vertical axis.
Show how fear of higher interest rates has impacted the market for Nvidia shares and the bonds market, respectively, according to the report.
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