Tech rally continues
Dow closes at over 38,000 points
January 22, 2024, 11:02 p.m
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After the rally at the end of the week, follow-up purchases are driving Wall Street to new highs. The technology sector in particular remains in demand, and not just because of positive company reports. The hype surrounding artificial intelligence is also putting investors in a buying mood.
US equity investors remain in record spirit. The Dow Jones Index closed 0.4 percent higher on Monday at 38,001 points. The technology-heavy one Nasdaq advanced 0.3 percent to 15,360 points. The broad one S&P 500 index improved by 0.2 percent to a record close of 4,850 jobs.
Investors again turned to technology stocks in particular after the latest outlook TSMC and Great Micro Computers from Taiwan had fueled bets on increasing demand for artificial intelligence (AI) products. “Investors are increasingly viewing these stocks as bulletproof because even if the global economy loses momentum, demand for AI products will remain strong, protecting corporate earnings from macroeconomic headwinds,” said Marios Hadjikyriacos, investment analyst at broker XM.
Strategists are predicting a bumpy road ahead for the stock markets despite the new records. The dampened hopes of rapid interest rate cuts by the US Federal Reserve had hit Wall Street at the start of the year. “We will see high levels of volatility. Any economic slowdown could put a limit on markets, and with inflation still a concern, the Fed may be a lot longer in coming than markets think,” said Paul Nolte, market strategist at Murphy & Sylvest. Traders see the chance of an initial cut in March dwindling and are now concentrating on May.
China’s central bank disappoints
The Chinese central bank did not affect key interest rates at the start of the week. Investors struggled with the decision and sent Chinese markets plummeting. Stock marketers feared there was not enough government stimulus for the People’s Republic’s stuttering economy. “Investor confidence in domestic economic policy remains weak,” said asset manager Minsheng Royal Fund Management.
An expansion of the controls in connection with the emergency landing of a 737 MAX-9 to include other aircraft types from the manufacturer Boeing to. The shares fell slightly against the general market trend. The US Federal Aviation Administration (FAA) recommended that airlines also check the door locks on Boeing 737-900ER jets. The 737 MAX-9 is grounded after part of the plane’s wall broke off on an Alaska Airlines flight on January 5th.
Grain trader shares Archer Daniels Midland fell around 24 percent. Chief Financial Officer Vikram Luthar has been placed on leave amid investigations into accounting practices in the group’s nutrition segment. Gilead fell by around ten percent. The biotech group’s cancer drug Trodelvy failed to meet the main goal of overall survival in a clinical trial.