Tech stocks rally on AI chip demand; jobless claims hit year low By Investing.com
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© Reuters.
NEW YORK – The stock market presented a mixed picture on Thursday as the dipped by 0.3% while the rose by 1%, showcasing divergent investor sentiment across sectors. The technology sector, particularly semiconductor firms, experienced a notable uptick, spurred by robust demand for artificial intelligence (AI) chips.
Shares of Taiwan Semiconductor Manufacturing Company (TSMC) soared by 6.46% after the company forecasted significant revenue growth, signaling a bullish outlook for the semiconductor industry. Nvidia (NASDAQ:), another heavyweight in the semiconductor space, also enjoyed a rise in share price, further buoying the tech sector. This upward trend extended to other tech giants such as Apple (NASDAQ:) and Microsoft (NASDAQ:), which saw their stocks climb by 3.26% and 1.13% respectively amidst the broader tech rally.
In economic news, the United States reported a decrease in jobless claims, reaching the lowest point in a year, indicating a resilient job market. This positive labor data comes amid comments from Federal Reserve officials, including Raphael Bostic, suggesting that interest rate cuts may not materialize as soon as some investors had anticipated. The prospect of a delayed easing of rates has led to an increase in Treasury yields, with short-term rates particularly affected, reaching higher peaks.
Investors are weighing these developments as they navigate a complex economic landscape, balancing strong sector-specific performance against broader monetary policy expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters.
NEW YORK – The stock market presented a mixed picture on Thursday as the dipped by 0.3% while the rose by 1%, showcasing divergent investor sentiment across sectors. The technology sector, particularly semiconductor firms, experienced a notable uptick, spurred by robust demand for artificial intelligence (AI) chips.
Shares of Taiwan Semiconductor Manufacturing Company (TSMC) soared by 6.46% after the company forecasted significant revenue growth, signaling a bullish outlook for the semiconductor industry. Nvidia (NASDAQ:), another heavyweight in the semiconductor space, also enjoyed a rise in share price, further buoying the tech sector. This upward trend extended to other tech giants such as Apple (NASDAQ:) and Microsoft (NASDAQ:), which saw their stocks climb by 3.26% and 1.13% respectively amidst the broader tech rally.
In economic news, the United States reported a decrease in jobless claims, reaching the lowest point in a year, indicating a resilient job market. This positive labor data comes amid comments from Federal Reserve officials, including Raphael Bostic, suggesting that interest rate cuts may not materialize as soon as some investors had anticipated. The prospect of a delayed easing of rates has led to an increase in Treasury yields, with short-term rates particularly affected, reaching higher peaks.
Investors are weighing these developments as they navigate a complex economic landscape, balancing strong sector-specific performance against broader monetary policy expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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