Nasdaq Soars on AI Optimism: The Nasdaq experienced a notable surge on Thursday, fueled by Alphabet and Advanced Micro Devices (AMD), igniting optimism in the artificial intelligence (AI) sector. Alphabet’s shares rose by 5.3% following the launch of its latest AI model, while AMD saw a nearly 10% increase after estimating a potential $45 billion market for its data center AI chips. This rally extended to other tech-related heavyweights, with Nvidia, Meta Platforms, Amazon, and Apple all posting gains. The Philadelphia semiconductor index jumped 2.8%, contributing to its 48% gain in 2023, largely driven by bullish sentiments around the future of AI.
Jay Hatfield, CEO of Infrastructure Capital Management in New York, described it as an “AMD-Google rally,” emphasizing a contagion effect across the market as investors sought to join the bandwagon. The market has displayed a tag-team dynamic, where alternating days see tech, value, and the broader market taking the lead.
The S&P 500 continued its upward trajectory, reaching 4,585.59 points, with 1.8 stocks gaining for each that fell. Tesla was the most traded stock in the S&P 500, with $25.7 billion worth of shares changing hands. The Nasdaq Composite surged to 14,339.99 points, while the Dow Jones Industrial Average rose to 36,117.57 points.
Also Read: Market Momentary Pause: SP 500 and Nasdaq Halt Winning Streak Amid Retail and Fed Caution
As the market anticipates the Federal Reserve maintaining rates at its upcoming meeting, investors are closely watching economic indicators. Thursday’s data revealed a modest increase in Americans filing new claims for unemployment benefits, standing at 220,000 for the week. Eyes are now on the upcoming Labor Department jobs report, set to provide insights into the pace of the U.S. economic softening, potentially influencing expectations about the Fed’s future rate decisions.
Despite this positive momentum, Merck faced challenges, witnessing a 1.7% decline after its immunotherapy combination failed in a lung cancer study. The market’s ongoing dynamics highlight the nuanced interplay between tech-driven rallies, broader economic indicators, and individual company performances.
Our Reader’s Queries
What are the best AI stocks to buy right now?
Financial media has identified the top artificial intelligence stocks to invest in for 2024. These include C3.ai, Palantir Technologies, CrowdStrike Holdings, Snowflake Inc., Palo Alto Networks, Oracle Corporation, and Advanced Micro Devices. These companies are expected to perform well in the coming years due to their innovative use of AI technology. As an investor, it may be wise to consider adding these stocks to your portfolio for potential long-term growth.
Is AI good at stock prediction?
High-frequency trading (HFT) powered by AI has become the go-to strategy for predicting stock prices with precision. With the ability to execute trades in mere milliseconds, HFT enables investors and financial institutions to take advantage of even the slightest price differences. This cutting-edge technology has proven to be the undisputed champion in the world of stock trading.
Will Nasdaq improve in 2023?
The Nasdaq-100, which monitors the top 100 nonfinancial stocks on the Nasdaq, experienced a significant drop in value in 2022. However, it has made a remarkable comeback in 2023, with a 45% increase in value as of now.
Is C3 AI a good buy?
C3.ai stock boasts an impressive Relative Strength Rating of 91, indicating that it has outperformed 91% of all stocks in the IBD database over the past year. However, it’s important to note that this alone doesn’t necessarily make it a wise investment choice. It’s crucial to take into account the stock’s volatility, which can be quite erratic, as is often the case with growth stocks.