Stock market in New York persistently sets new records following reductions in interest rates
The US Federal Reserve, as expected, lowered the interest rate by 0.25 percentage points, with economist Eric Winograd from AllianceBernstein cautioning that markets may be underestimating systemic risks due to political pressure on the Fed.
In the tech sector, Nvidia made headlines with a significant move. Jensen Huang, the CEO of Nvidia, led the acquisition of a majority stake in Intel for $5 billion, with the two companies also agreeing to collaborate on developing next-generation AI technologies and semiconductor innovations. This partnership is set to strengthen Intel's position and bolster its financial standing.
Meanwhile, Nvidia shares rose by 3.6 percent, while Intel's shares soared by almost 25 percent, marking a significant turnaround for the struggling processor manufacturer.
The Nasdaq Composite, Nasdaq 100, S&P 500, and Dow Jones Industrial Average all saw gains, with the Nasdaq Composite advancing 1.09 percent to 22,504 points, the Nasdaq 100 climbing 1.13 percent to 24,498 points, the S&P 500 rising 0.61 percent to 6,640 points, and the Dow Jones Industrial Average gaining 0.41 percent to 46,207 points.
CrowdStrike, a leading cybersecurity company, also saw a surge in its shares, with a more than 11 percent increase. The company, known for offering operational simplicity on a large scale, continues to displace established providers and maintain its dominant market position. Brian Essex from JPMorgan has a positive outlook on CrowdStrike, reflecting confidence in the company's growth potential.
The labor market remains a key focus for investors, with the Fed expecting the unemployment rate to reach its peak this year. The weekly initial jobless claims declined significantly on Thursday, indicating a potential improvement in the job market.
Despite the positive market trends, AMD shares came under pressure and lost 2.3 percent, highlighting the continued volatility in the tech sector.
As the market continues to navigate through economic uncertainties, investors will be keeping a close eye on these developments, with the labor market and the ongoing partnerships between tech giants being particularly important factors to watch.
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