Editor
Wall Street edged higher, while the Teck sector demonstrated its strength and boosted investors’ hopes.
Tech stocks continue to dominate this year. After three weeks, tech stocks have proven their market strength, despite concerns over early interest rate cuts. The Nasdaq compote rises for the third consecutive session this week, scoring a 1.9% increase this weekend session. The Nasdaq 100 (NDX) achieves a new all-time high at 16,982, highlighting the ongoing tech boom. Boosted by chip optimism, AI-related news contributes to positive sentiment despite concerns about potential Fed rate cuts later in the year.
Several increases in Kay Tech stocks drove today’s high gains. Key tech companies, including Nvidia (NVDA), Meta (META), and Microsoft (MSFT), report impressive year-to-date returns (NVDA +19%, META +9%, MSFT +8%).
Notable gains were also observed in big tech players such as Alphabet (GOOGL) +5%, Amazon (AMZN) +2%, and Apple (AAPL) +2%.
Tesla (TSLA) experienced a 15% decline in shares this year, with Elon Musk’s past threat to develop AI products outside the company remembered.
Moving to the AI verse news, Sam Altman at Davos expresses his opinion and says, “This is like, bigger than just a technological Al revolution.” On top of that, other reports indicate that Mark Zuckerberg decided to merge Meta’s (META) key AI research groups, FAIR and GenAI, recognizing the need for full general intelligence in the next generation of services. This news focus by Mark includes other strategies, such as deploying 350,000 Nvidia (NVDA) H100 GPUs by year-end or nearly 600,000 H100 equivalents when accounting for other GPUs. In terms of market explanation, if Mark succeeds in its new plan, this might generate even greater revenues this year and in the next five years, which will help recover the tech stock.
Moving on to the next two indexes, the S&P 500 benchmark and the Dow Jones future were also boosted by tofu gains, depending on the currencies around the Fed and its interest rates. The S&P 500 indexes were up by 1%, scoring higher gains than the previous session of 0.11%. The Dow Jones also scourged better than previous sessions by raising by 0.89% as of 14:20 a.m. ET New York time.
Keeping with the industry stock news, Macy’s (M) stock declined by 0.8% following reports in the Wall Street Journal about the department store’s plans to reduce staff and close locations. By using this approach, Macy’s helps to lower costs and streamline operations. Wayfair Inc. (W) experiences a 10% stock surge as the online furniture and home goods seller discloses intentions to cut approximately 13% of its workforce, forming part of a broader business revamp. Plus, Spirit Airlines Inc. (SAVE) foresees more than 25% increases in its stock prices after the U.S. budget carrier announces preliminary quarterly operating revenue surpassing average analyst projections.
In other economic news, investors are still digesting the recently reported data, this time regarding existing home sales. The existing home sales are expected to increase compared to the previous. Yet, compared to market expectations, the number came in lower than market expectations.
