Wall Street Revels In Gains As AI, Tech Titans Surge; Dollar Plunges Against Yen: What’s Driving Markets Thursday? – Advanced Micro Devices (NASDAQ:AMD)

Wall Street experienced a bullish Thursday afternoon as investors grew increasingly optimistic about disruptive technology, particularly in the AI and tech sectors. The surge in AI stocks and the involvement of tech giants like Microsoft and Meta Platforms propelled the market forward.

One significant development was the news that Advanced Micro Devices Inc. (AMD) saw an 8% surge following the announcement that Microsoft and Meta Platforms will be utilizing AMD’s new AI chip, Instinct MI300X. This move poses a challenge to Nvidia Corp.’s market dominance in the AI chip sector.

The major US indices and ETFs also performed well on Thursday. The Nasdaq 100 was up 1.5%, the S&P 500 increased by 0.8%, the Russell 2000 rose by 0.5%, and the Dow Jones saw a 0.2% increase.

In terms of individual stocks, Alphabet Inc. (GOOG, GOOGL) saw a 6% increase as Wall Street celebrated the launch of Gemini, a new AI model that has the potential to close the gap in the race against Microsoft-backed OpenAI. This contributed to the positive performance of the Nasdaq 100.

The dollar index (DXY) declined by 0.8%, primarily driven by a significant drop of the greenback against the Japanese yen, marking the most substantial movement since December 2022. Gold remained steady, while oil continued its downward trend.

Bitcoin experienced a 1% decline following negative remarks from JPMorgan CEO Jamie Dimon. However, the overall sentiment remained positive for the market.

Communication services and technology sectors led gains, with the Communication Services Select Sector SPDR Fund (XLC) and the Technology Select Sector SPDR Fund (XLK) up by 2.4% and 1.1% respectively. Energy continued to lag behind, with the Energy Select Sector SPDR Fund (XLE) down 0.7%.

In terms of economic data, new unemployment benefit claims held steady, mortgage rates fell, and wholesale inventories saw a decline. These factors did not significantly impact the overall positive sentiment in the market.

Some notable stock movements included Walgreens Boots Alliance Inc. (WBA) surging by 7.6% following the announcement of an expanded range of COVID-19 and flu testing and treatment options. Dish Network Corp. (DISH) and EchoStar Corp. (SATS) rose after receiving approval for their proposed merger.

However, not all stocks saw positive movements. R1 RCM Inc. (RCM) fell over 6% after Deutsche Bank lowered the stock’s price target. Teradata Corp. (TDC) also fell over 6% without any market-sensitive news.

Looking ahead, investors will be eagerly awaiting the release of earnings reports from companies such as Broadcom Inc., The Cooper Companies, DocuSign, and Vail Resorts after the closing bell.

Overall, Wall Street’s bullish Thursday afternoon, driven by AI stocks and tech giants, reflects the increasing optimism surrounding disruptive technology and its potential impact on the market.