In a buoyant start to the week, US stocks closed in positive territory on Monday, extending their winning streak for the third consecutive week. The optimism was fueled by persistent hopes for a pullback in US interest-rate hikes, providing a boost to investor confidence.
The S&P 500 (^GSPC) marked a notable 0.7% increase, while the Dow Jones Industrial Average (^DJI) ascended by over 0.5%, translating to a gain of approximately 200 points. The tech-focused Nasdaq Composite (^IXIC) outperformed, surging over 1% to conclude the first day of the shortened trading week on a high note.
The market’s upward trajectory has been sustained by indications of moderating inflation, fostering the belief that the Federal Reserve may have concluded its rate-raising cycle. Attention has now shifted to speculation about a potential rate cut, with traders factoring in a 30% likelihood of such a move occurring as early as March.
Investors eagerly await the release of the Federal Reserve’s meeting minutes scheduled for Tuesday, anticipating insights that could influence discussions on the timing of a rate cut. However, with a sparse economic calendar and the impending Thanksgiving holiday on Thursday, trading activity may experience a lull.
Among the focal points in the upcoming days is Nvidia’s financial results, set to be unveiled on Tuesday. The chipmaker’s previous earnings report triggered a broad surge in stock prices, driven by the escalating excitement surrounding artificial intelligence. Nvidia (NVDA) achieved a record high on Monday, with shares climbing over 2%.
Microsoft (MSFT) also clinched an all-time high following the surprising departure of Sam Altman from OpenAI, sending shockwaves through Wall Street. After a weekend of speculation, Altman and fellow OpenAI co-founder Greg Brockman have joined forces with Microsoft to spearhead a new advanced AI research team, as announced by Microsoft CEO Satya Nadella.
The collaboration between Altman, Brockman, and Microsoft adds a new dimension to the technology and AI landscape, signaling a strategic move by the tech giant to reinforce its position in the rapidly evolving field of artificial intelligence.
In conclusion, the sustained resilience of stocks in positive territory reflects the prevailing optimism in the market, underscoring investor confidence as the week progresses. As the week unfolds, market participants will closely monitor these developments, seeking cues on the future trajectory of interest rates and the potential impact on key players in the technology sector.
Source: Yahoo Finance
