Tech stocks push Wall Street
Dow Jones closes in positive territory despite Boeing incident
January 8, 2024, 11:47 p.m
Strong price movements in the aviation and technology sectors are pulling the US stock markets in different directions at the start of the week. In addition, rumors of a billion-dollar takeover of a pharmaceutical company are causing a sharp jump in share price.
Price gains in the technology sector drove US stock markets on Monday. The Dow Jones Index the standard values closed 0.6 percent higher at 37,683 points. The technology-heavy one Nasdaq advanced 2.2 percent to 14,843 points. The broad one S&P 500 increased 1.4 percent to 4763 points.
Among other things, a price jump of more than six percent ensured a good mood Nvidia. Rivals like Intel and Marvell also gained between 3.3 and 6.9 percent in their wake. Also other technology stocks like Amazon, alphabet and Microsoft advanced by up to 2.7 percent.
According to insiders, Nvidia will begin mass production of an artificial intelligence (AI) chip developed for China in the second quarter. The company designed the product to comply with the recently tightened US export regulations. “We believe gains in megacaps will be sustained after last year’s rally,” said Chris Zaccarelli, chief investor at Independent Advisor Alliance. “Many investors turn to growth stocks because they become real profit machines in good times.”
Boeing price crashes after incident
Aviation stocks were also in the spotlight. The US aircraft manufacturer Boeing After a dramatic incident with a cabin part breaking off at an altitude of almost 4,900 meters, new trouble is threatening with its bestseller 737 Max 9. Boeing lost over eight percent. “The incident has shaken Boeing’s reputation,” said Russ Mold, manager at asset manager AJ Bell. “Ultimately, this is just the latest in a series of problems affecting the 737 MAX.” Also the papers of the airline concerned Alaska Air were slightly in the red. In contrast, the titles of competitors such as JetBlue Airways and United Airlines each gained around three percent.
Other companies were driven by the prospect of a takeover by the US group Merck Harpoon Therapeutics at. Shares of the cancer drug specialist jumped 112 percent to a 13-month high of $22.4. Merck wants to buy Harpoon for $23 per share to expand its cancer drug portfolio to include immunotherapy-based treatments. The shares of the US pharmaceutical giant were slightly higher.
The shares of the Language learning app Duolingo increased by around three percent. Market observers explained the price increases with a media report that the company wants to replace some of its employees with artificial intelligence (AI). In order to generate content for the app, more AI will be used in the future, reports Bloomberg, citing a company spokesman. Since its IPO in 2021, Duolingo’s market valuation has doubled.
The shares of the biopharmaceutical company were also in demand Cytokinetics with a price gain of over 15 percent. The Swiss pharmaceutical company Novartis According to an insider, the company is on the verge of a billion-dollar takeover. The deal, which could value Cytokinetics at more than $10 billion, is expected to close this week, a person familiar with the matter said.