In the latest U.S. stock market activity, diverse trends were observed following significant political and economic developments. The Dow Jones Industrial Average gained 158.72 points or 0.36% to reach 43,888.06, while the Nasdaq fell by 14.05 points or 0.07% to 19,255.41. The S&P 500 Index saw an increase of 7.12 points or 0.12% to settle at 5,980.22. These movements come amid investor assessments of the potential outcomes of the U.S. elections and the Federal Reserve's interest rate policy decisions.
The election results led to a notable surge in U.S. stocks, with the anticipation of deregulation and tax cuts potentially favoring economic growth. Analysts at Evercore ISI suggest that the current bull market in U.S. stocks remains in its early stages, with projections indicating further growth in response to policy changes under the new administration.
The Federal Reserve recently cut the federal funds rate by 25 basis points, in line with market expectations. Fed Chair Jerome Powell expressed optimism about the economy, though he did not comment definitively on future rate cuts. Market analysts maintain that further rate cuts could occur unless inflation and employment data shift significantly.
On the corporate front, NVIDIA (NVDA, Financial) made history as the first company to surpass a market capitalization of $3.6 trillion, affirming its dominance in the global market. Goldman Sachs reiterated its "buy" rating on NVIDIA, highlighting advancements in AI infrastructure as a catalyst for future earnings growth.
Tesla (TSLA) began offering leasing options for its Cybertruck, with monthly payments starting at $999. The company also achieved compliance recognition for automotive data security, enhancing its market position.
AMD experienced significant gains in market share across desktop, laptop, and server segments, driven by strong performance from its Ryzen 9000 series processors. This contrasted with Intel's declining market share in the same categories.
Amazon is reportedly considering a new investment in Anthropic, a startup specializing in generative AI, potentially involving billions of dollars. This follows an earlier investment of $4 billion, with stipulations regarding the use of Amazon's AI chips.
TSMC reported a revenue growth slowdown in October, indicating potential caution in sustained demand for AI chips, despite an overall annual gain of over 80% in its stock price.
