Ticker: NTSB concludes flaming wheel bearing caused east Ohio derailment; Nvidia rebounds, and it’s back to masking losses for the rest of Wall Street

Last year’s disastrous Norfolk Southern train derailment in East Palestine, Ohio, was caused by a wheel bearing that video showed was on fire for more than 20 miles (32.19 kilometers) beforehand but was never caught by trackside detectors that failed to accurately measure the temperatures, the National Transportation Safety Board confirmed Tuesday. The board also said that Norfolk Southern and its contractors botched a decision three days later to blow open five tank cars and burn the vinyl chloride inside.

Area residents, rail industry representatives and local and state officials packed East Palestine High School’s auditorium Tuesday to hear the NTSB’s investigation findings and its recommendations to establish federal rules for those detectors and the way railroads respond to them along with reviewing how officials decide whether to ever conduct a vent and burn again.

The board approved more than two dozen recommendations that the railroad, industry and other federal agencies will consider adopting.

Dozens of freight cars derailed Feb. 3, 2023, on the outskirts of East Palestine near the Pennsylvania border, including 11 carrying hazardous materials. Some residents were evacuated that night but days later more had to leave their homes amid fears of an imminent explosion. Despite potential health effects, officials intentionally released and burned toxic vinyl chloride from five railcars three days after the crash, sending flames and smoke into the air.

Nvidia rebounds, and it’s back to masking losses for the rest of Wall Street

A rebound for Nvidia propped up a weakened Wall Street Tuesday.

The S&P 500 rose 0.4% and neared its all-time high set a week earlier, while the Nasdaq composite leaped 1.3% for its first gain in four days. Such strength came even as most stocks outside Wall Street’s frenzy around artificial-intelligence technology fell.

The Dow Jones Industrial Average, which doesn’t include Nvidia among its members, was a laggard and sank 299 points, or 0.8%.

Nvidia climbed 6.8%, and without that gain, the S&P 500 would have dropped to a loss for the day. The chip company’s shares snapped a three-day losing streak where they had lost nearly 13% for their worst such stretch since 2022.

It’s just one stock, but Nvidia has the power to swing the S&P 500 around because it’s grown to become one of Wall Street’s largest and most influential companies.

Voracious demand for Nvidia’s chips to power artificial-intelligence applications has been a big reason for the U.S. stock market’s run to records recently, even as the economy’s growth slows under the weight of high interest rates. But the AI boom has been so frenzied that it’s raised worries about a possible bubble in the stock market and too-high expectations among investors.

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