U.S. Stock Diary: Nasdaq surges 2.7% Amid Chipโข Export Optimism & AI Enthusiasm
NEW YORK – U.S. stocks closed higher โon Wednesday, wiht teh Nasdaq Composite leading gains,โข rising 2.7%. โTheโ rally was fueled byโ optimism โคsurrounding potential easing of chip export restrictions and continued investor enthusiasm for artificial intelligence.
Key Movers:
* Tesla: Shares climbed nearly 7%,initially jumping around 10% following reportsโ – later deniedโฃ by authoritiesโ – of potential approval for its fully autonomous driving โtechnology in the Netherlands. CEO Elon Musk announced theโ company’s AI5 chip designโฃ is โขnearing completion, withโค development of a newโข AI6 chip to follow.
* Meta: The stockโข increased 3.3% despite calls fromโ U.S. senators for investigations into fraudulent advertising on the platform and potential penalties.
* Amazon: Amazon rose 2.5% and announced a US$50 billion investment to support โฃthe U.S. government’s AIโ initiatives.
Market Outlook:
Major banks expressed generally optimistic views onโ the market. deutsche Bank predicted the S&P 500 index will reach 8,000 points by the end ofโ next โyear, citing strong corporate profits and AI-drivenโ growth.โ Morgan Stanley’s Michael Wilson suggested the recent stock correction may be ending,viewing any โfurther short-term weakness as โฃaโค buying opportunity.He reiterated an optimistic โoutlook for next year, recommending focus on consumer discretionary, healthcare, financial, โindustrial, and small-cap โstocks. Morgan Stanley has a one-year target โof 7,800 points for the S&P 500.
Citigroup’s Andyโ Sieg noted continued strength in โขcorporate earnings expectations and a lack of excessive market optimism, suggesting further potential for a bull โmarket. “thereโข is no overly optimistic sentiment in the market, and there is no โbehavior โlike investors frantically throwing money at buying stocks inโข the late stages of the bull market,” he stated.
Federal Reserve:
Federal reserve board Governor โฃChristopher Waller reaffirmed his support โfor a rate cut in December but indicated a โขpotentialโ shift to a meeting-by-meeting approach starting in January, โขpending further economic data. He cautioned that rebounding inflation or employment figures could raise concerns,but currently believes the labor market will remain soft in the coming weeks.