Stock market today: Nasdaq surges as Nvidia, Amazon lead tech rally ahead of Fed decision

Investors are optimistic about tech stocks, especially those that are bolstered by improved fundamentals and the potential for tax cuts, which can lead to stronger earnings. Nvidia and Amazon's performance reflects this optimism as they operate in high-growth sectors. However, concerns in the housing market fueled negative sentiment for homebuilders like DHI, which face affordability issues. Lyft's strong earnings suggest potential for recovery in the ride-hailing sector. Overall, the market sentiment remains bullish but selective, favoring technology and resilient consumer sectors over housing.

Lyft reported better-than-expected earnings and is expanding its services, including partnerships in autonomous vehicles. This diversification can fuel further growth and recover investor sentiment, despite analysts being cautious for now. The strong earnings beat signifies potential for upward movement in stock prices.

Despite the optimism elsewhere, DHI has been downgraded due to the persistent high mortgage rates which limit housing affordability. As a result, this downgrade reflects a bearish outlook on the company’s short-term performance as it struggles with decreased home orders amidst these economic pressures.