Wall Street's Tech Ascendance
Tech Gains Fuel Wall Street's Climb
Wall Street clambered higher on Thursday, with tech titans being the driving force. Alphabet, Google's parent company, soared a whopping 6.4%, propelling the Dow Jones index up slightly to 36,108 points. The broader S&P 500 leaped 0.8% to 4,585 points, while the Nasdaq technology exchange skyrocketed 1.4% to 14,343 points.
Google's AI Showcase and Tech Giants' Gains
Alphabet, following its Wednesday AI announcement, became the day's star performer. In a similar vein, Apple, Nvidia, and Intel shares saw 1.5% gains each. "We're witnessing a dual stock market today," commented Ken Mahoney, Mahoney's managing director. "Alphabet is tech-positive in terms of earnings, even though it may not earn directly from AI."
AMD Takes Flight
Investors weren't shying away from AMD, with its shares skyrocketing 8% following optimistic projections for its AI processor market. Beyond tech, Walgreens Boots Alliance stood out, yielding a 8.5% increase in stock price due to its expanded Covid-19 and influenza test and treatment offerings. Bristol-Myers Squibb's shares grew 2% after its Board approved an additional $3 billion stock buyback plan.
US Labor Market Awaits Report
Investors now eagerly anticipate the US government's labor market report set for release Friday. Experts anticipate job growth of 180,000 after 150,000 in October. The Federal Reserve's attempt to curb inflation through interest rate hikes and cooling the labor market has investors on edge.
While recent market rallies were fueled by hopes of falling interest rates, several analysts believe the enthusiasm is overblown. "The Fed has no intention of reducing interest rates anytime soon," said Joe Saluzzi, Themis Trading manager. "Further interest rate hikes will hinge on incoming data."
The Dollar Dips
The dollar index tumbled 0.7% to 103.472 points as the euro strengthened by 0.4% to 1.0803 dollars.
Oil Prices Continue to Slump
The oil market saw continuous price drops, with Brent and WTI both falling around half a percent to $73.93 and $69.16 per barrel, respectively. Concerns over weak demand and economic downturns in the USA and China persisted while OPEC+ decisions cast doubt on delivery of oil volume cuts.
Source:
Additional Insights
- In the last week, the US market has risen 1.2%, and, over the past year, it has climbed 24%, with annual earnings growth projected at 15%[1].
- High growth tech stocks are recognized by their innovation and adaptability, allowing them to capitalize on market advantages[1].
- Alphabet's shares have returned 26.4% in the last 12 months, outperforming its sector and industry[2].
- The US Energy Information Administration (EIA) forecasts a decrease in crude oil prices due to rising global production and slower demand growth[3].
