Quiver Quantitative - The Nasdaq 100 rebounded sharply as investors bet on a continued boom in artificial intelligence (AI), propelled by the release of Google's new Gemini AI model and positive comments from analysts. Meanwhile, speculation about a potential shift in Bank of Japan (BOJ) monetary policy drove the yen higher and the dollar lower.
Market Overview: -The Nasdaq 100 (QQQ) rose 1.5%, while the S&P 500 (SPY) halted a three-day decline. -Optimism surrounding AI drove gains in Alphabet (NASDAQ:GOOGL) and AMD (NASDAQ:AMD) -The BOJ's hawkish signals sent the yen up 2.5% and the dollar down. -Recurring jobless claims fell in the US, but concerns remain about a cooling labor market.
Key Points: -AI is expected to be a major driver of economic growth in 2024 and beyond. -Investors are betting on potential rate cuts by central banks next year. -US stocks are vulnerable to any macro shocks due to their optimistic outlook. -Tesla's (TSLA) Dojo supercomputer project lead has left the company. -Dish Network (DISH) shares surged after the FCC approved its merger with EchoStar. -JetBlue (JBLU) boosted its full-year financial outlook on better-than-expected bookings. -Elon Musk's SpaceX is considering selling insider shares at a valuation of $175 billion. -ChargePoint shares rose despite a steep revenue drop due to its long-term potential.
Looking Ahead: -Germany's CPI and Japan's household spending and GDP data are due on Friday. -The US jobs report and University of Michigan consumer sentiment are also scheduled for Friday.
In the labor market, US jobless benefit claims showed a decline, but they are still near a two-year high, pointing to a cooling labor market. This data, coupled with the anticipation of Friday's jobs report, holds significant implications for future economic and market directions. Despite recent market rallies, analysts caution that stocks are already reflecting an optimistic economic growth outlook, making them vulnerable to macroeconomic shocks.
Bank of America (BAC) quant strategists believe the S&P 500 can continue to rise next year without the sole support of big tech companies. This contrasts with this year's rally, which heavily relied on major tech players. In corporate news, Tesla (NASDAQ:TSLA) faces a setback in its self-driving technology efforts, while Dish Network (NASDAQ:DISH) shares surged following FCC approval of its merger with EchoStar Corp. (SATS).
This article was originally published on Quiver Quantitative