U.S. Stock Diary: Nasdaq surges 2.7% Amid Chip Export Optimism & AI Enthusiasm
NEW YORK – U.S. stocks closed higher on Wednesday, wiht teh Nasdaq Composite leading gains, rising 2.7%. The rally was fueled by optimism surrounding 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 reports – later denied by authorities – of potential approval for its fully autonomous driving technology in the Netherlands. CEO Elon Musk announced the company’s AI5 chip design is nearing completion, with development of a new AI6 chip to follow.
* Meta: The stock increased 3.3% despite calls from 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 the U.S. government’s AI initiatives.
Market Outlook:
Major banks expressed generally optimistic views on the market. deutsche Bank predicted the S&P 500 index will reach 8,000 points by the end of next year, citing strong corporate profits and AI-driven growth. Morgan Stanley’s Michael Wilson suggested the recent stock correction may be ending,viewing any further short-term weakness as a buying opportunity.He reiterated an optimistic outlook for next year, recommending focus on consumer discretionary, healthcare, financial, industrial, and small-cap stocks. Morgan Stanley has a one-year target of 7,800 points for the S&P 500.
Citigroup’s Andy Sieg noted continued strength in corporate earnings expectations and a lack of excessive market optimism, suggesting further potential for a bull market. “there is no overly optimistic sentiment in the market, and there is no behavior like investors frantically throwing money at buying stocks in the late stages of the bull market,” he stated.
Federal Reserve:
Federal reserve board Governor Christopher Waller reaffirmed his support for a rate cut in December but indicated a potential shift to a meeting-by-meeting approach starting in January, pending 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.
