Technology Stocks Experience Significant Price Surge

On Wall Street, major stock indices rose on Thursday, with the Dow Jones and S&P breaking a 3-day negative streak, while the Nasdaq index jumped by more than one percent due to demand for technology stocks fueled by optimism around artificial intelligence.

The New York Dow Jones rose by 0.17% to 36,117 points, the S&P 500 strengthened by 0.8% to 4,585 points, and the Nasdaq index increased by 1.37% to 14,339 points.

The price of Alphabet’s stock, Google’s parent company, surged by more than five percent after it announced the latest version of its AI model. AMD’s stock also significantly increased by more than nine percent after the chip manufacturer estimated that the potential market for its chips used in artificial intelligence could reach $45 billion this year alone.

Other technology stocks also experienced significant price jumps, such as Nvidia, Amazon, Apple, and Meta Platforms. The Philadelphia semiconductor sector index has gained as much as 48% since the beginning of the year, largely because investors have high expectations regarding artificial intelligence.

– Today it’s the rise of AMD and Google, but the contagion is spreading across the market. Everyone wants to hop on the train – says Jay Hatfield, CEO of New York-based Infrastructure Capital Management.

The positive market sentiment was also supported by the latest data from the U.S. labor market, which showed that 220,000 Americans filed for unemployment benefits last week, fewer than expected.

Investors are awaiting new guidance on Friday with the release of the employment data for November, which is expected to signal how quickly the U.S. economy is slowing down and when the Fed might start cutting interest rates. The market estimates that the chances of interest rates starting to fall as early as March are nearly 64%.

On European exchanges on Thursday, indices slightly declined – the London FTSE index fell by 0.02% to 7,513 points, the Frankfurt DAX by 0.16% to 16,628 points, and the Paris CAC by 0.1% to 7,428 points.