Nasdaq Jumps as Alphabet & AMD Reveal Explosive Growth

Nasdaq Jumps as Alphabet & AMD Reveal Explosive Growth

The Nasdaq experienced a significant surge on Thursday, fueled by positive developments in the artificial intelligence sector, particularly with Alphabet and Advanced Micro Devices leading a megacap rally.

Alphabet’s shares (GOOGL.O) saw a robust 5.3% increase following the launch of its latest AI model, garnering praise from analysts. Simultaneously, Advanced Micro Devices (AMD) witnessed an impressive 10% surge as the company estimated a potential $45 billion market for its data center AI chips in the current year.

This AI-driven optimism extended to other heavyweight tech-related stocks, with Nvidia (NVDA.O) and Meta Platforms (META.O) rising over 2%, Amazon (AMZN.O) gaining 1.6%, and Apple (AAPL.O) seeing a 1% increase.

The Philadelphia semiconductor index (.SOX) experienced a notable 2.8% jump, contributing to its 48% gain in 2023, largely influenced by positive sentiments surrounding the future of AI.

Jay Hatfield, CEO of Infrastructure Capital Management in New York, remarked on the market dynamics, stating, “Today it’s an AMD-Google rally. There’s a contagion effect across the market. Everyone wants to get on the bandwagon.”

The S&P 500 (.SPX) continued its upward trend since the end of October, driven by expectations that the Federal Reserve has concluded its interest rate hike campaign and might initiate rate cuts in March. The index closed at 4,585.59 points, representing a 0.80% increase, with 1.8 stocks gaining for each one that fell.

Tesla emerged as the most traded stock in the S&P 500, with $25.7 billion worth of shares changing hands during the session, experiencing a 1.37% rise.

The Nasdaq Composite (.IXIC) surged by 1.37% to reach 14,339.99 points, while the Dow Jones Industrial Average (.DJI) saw a 0.18% increase, closing at 36,117.57 points.

U.S. exchanges witnessed heavy volume, with 11.2 billion shares traded, surpassing the average of 10.8 billion shares over the previous 20 sessions.

Traders have largely factored in the likelihood of the Federal Reserve maintaining unchanged interest rates at its upcoming meeting. Data revealed a lower-than-expected increase in Americans filing new claims for unemployment benefits last week.

Looking ahead, a Labor Department jobs report scheduled for Friday could provide insights into the pace of the U.S. economic softening, potentially influencing expectations about the timing of Fed rate cuts. Interest rate futures suggest a nearly 64% chance of a rate cut as early as March, according to the CME Group’s FedWatch tool.

However, limiting gains in the Dow, Merck’s shares (MRK.N) fell by 1.7% following the failure of the drugmaker’s immunotherapy combination in a lung cancer study.

About Author

Ahmed Hassan

Ahmed Hassan, a distinguished Ph.D. holder in Political Science from Stanford University, is your go-to expert for in-depth political analysis. His well-researched articles provide valuable insights into the complex world of politics. Ahmed's commitment to balanced reporting and informed commentary ensures you're always up-to-date with the latest developments in the political landscape.

Leave a Reply

Your email address will not be published. Required fields are marked *