Wall Street and the crypto market felt the reverberations of economic data as Q3 drew to a close in a crescendo of activity.
Amidst this somersault of market dynamics, Micron Technology (NASDAQ:MU) revealed robust earnings, catapulting future artificial intelligence (AI) prospects to stratospheric heights. The unveiling of new AI features and products by Meta Platforms (NASDAQ:META) further fanned the flames of speculation and anticipation.
Within the tantalizing landscape of tech, the whirlwind surrounding OpenAI intensified with executive exits and whispers of a restructuring, propelling the sphere into a maelstrom of conjecture.
Stay abreast of the latest tech world revelations with the Investing News Network’s sweeping roundup.
1. Robust Close to the Week Fueled by Strong US Jobs Data
The week commenced on a buoyant note as Wall Street’s major indexes embarked on a modest ascent on Monday (September 23). The flash S&P Global Services Purchasing Managers’ Index for September exceeded expectations by a hair’s breadth, registering a commendable 55.4 versus the anticipated 55.2, thereby reinforcing the prevailing optimism surrounding the economy’s vitality.
Despite this sunny sentiment, Phil Blancato, the CEO of Ladenburg Thalmann Asset Management, sounded a note of caution, flagging the market’s high hopes for additional rate cuts from the US Federal Reserve. These hopes, he suggested, could sow seeds of volatility in the forthcoming weeks.
Tuesday (September 24) witnessed China unfurling a grand tapestry of stimulus measures aimed at shoring up its economy—a move that rippled through global stocks like a stone cast into a placid lake. The S&P/TSX Composite Index (INDEXSTSI:OSPTX), S&P 500 (INDEXSP:.INX), and the Nasdaq Composite (INDEXNASDAQ:.IXIC) all etched new closing records. Notably, chip stocks, including Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC), lent wings to the PHLX Semiconductor Sector (INDEXNASDAQ:SOX), propelling it skyward by 1.23 percent.
On Wednesday (September 25), equities traded in a narrow band, with the Nasdaq Composite inching downward by 0.13 percent post the opening bell. However, as the sun reached zenith, behemoths like NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) orchestrated a U-turn for the tech-heavy index, propelling it to close a mere 0.17 percent above its starting point. In contrast, the S&P 500 and S&P/TSX Composite Index ceded ground gracefully.
Thursday (September 26) disclosed the US’s weekly initial jobless claims data, painting a picture of 218,000 new claims versus the anticipated 225,000—signaling a robust labor market on the ascent.
Within the tech sector,
Micron’s Forecast Boosts Market Sentiment as Stocks Rally
Gains Across Indices
Amidst midday trading, the S&P/TSX Composite Index soared to a new record high above 24,000 points, marking its second peak this week. The PHLX Semiconductor Sector climbed by 3.77 percent, fueled by optimistic forecasts from Micron shared post-Wednesday’s closing bell. The S&P 500 hit an intraday all-time high of 5,767.37 before slightly retracting to 5,745.37, still showing a 0.4 percent increase. Notably, the Russell 2000 INDEXRUSSELL:RUT) stood out as the leading gainer on Thursday, closing 0.62 percent higher.
Market Reaction to Economic Indicators
The Personal Consumption Expenditures Price Index report released on Friday (September 27) indicated a modest rise in inflation for August, resulting in minimal impact on stock performance. The S&P 500 concluded the week with a marginal 0.13 percent decline, while both the Nasdaq Composite and Nasdaq-100 INDEXNASDAQ:NDX) saw drops of 0.39 percent and 0.53 percent, respectively. In contrast, small-cap stocks continued their outperformance, with the Russell 2000 posting a gain of 0.67 percent at closing.
Bitcoin’s Price Movement
The past week witnessed Bitcoin breaking free from its price lock, bolstered by the Fed’s rate cut. Despite the $65,000 resistance level, optimistic market conditions and historical data hinted at a potential breakout. Bitcoin and Ether remained relatively stable as altcoins made modest gains. Noteworthy is the substantial inflow into Bitcoin exchange-traded funds (ETFs) and the SEC’s delay in deciding on spot Ethereum ETF options until November 11.
Thursday’s robust performance in the crypto market, driven by positive jobs data, propelled Bitcoin above $65,000, breaching $66,000 on Friday for the first time since July. Ethereum also surged to a weekly high of $2,721 by midday Friday.
Micron’s Impressive Results
Micron unveiled its fourth fiscal quarter results and full-year 2024 figures on Wednesday, triggering an 18 percent surge in its stock price by Thursday morning. Closing at $107.47 on Friday, Micron’s shares recorded a 16 percent weekly gain and a monthly increase of 9.82 percent. Notably, Micron’s Q4 revenue reached $7.75 billion, surpassing the $6.81 billion from the previous quarter and the $4.01 billion from the same period last year. The annual revenue also saw a significant jump, reaching $25.11 billion, up from $9.57 billion in the previous year.
Micron’s President and CEO Sanjay Mehrotra highlighted the company’s impressive growth, particularly in AI-driven data center DRAM products and NAND revenue records. With a positive outlook for fiscal 2025, the company anticipates record revenue in Q1 and substantial profitability enhancements throughout the year.
Technology Giants Make Waves in Financial Markets
Guidance for the Future
Anticipating revenue in the realm of US$8.7 billion for the first fiscal quarter of 2025, Micron Technology continues to exude confidence in the swelling demand for semiconductor chips, sailing resolutely ahead in an ocean of technological advancements. This sturdy vessel of resolve, steady at its helm, propels both itself and its peers towards a bright horizon.
The Ripple Effect
Last week, Micron’s enlightening financial voyage reverberated through the markets, casting a glow upon fellow navigators. NVIDIA, Taiwan Semiconductor Manufacturing Company, Advanced Micro Devices, and Qualcomm, all tasted the sweetness of success, their sails swelling with newfound optimism under the sunny skies of Micron’s growth.
Meta’s Technological Odyssey
Meta, formerly sailing under the Facebook flag, faced choppy waters this past week as its shares dipped marginally following the Meta Connect event. Despite this minor setback, the company showcased an armada of innovative products, including the budget-friendly Meta Quest 3S and the enchanting Wayfarer Ray-Ban Meta smart glasses.
Meta CEO Mark Zuckerberg, akin to a technological Odysseus, unveiled a trove of AI treasures – promising lip-synced translations of Reels, voice chat enchantments, and the ethereal Orion augmented reality glasses. Yet, like a modern-day Daedalus, he cautioned that these marvels are not yet ready for consumer shores, revealing only tantalizing glimpses of their potential.
Furthermore, Meta released the Llama 3.2 language model, a technological Chimaera designed for edge and mobile devices. With its grasp on eight languages and a knack for processing text and images, Llama 3.2 ushers in an era of multilingual conversational fluidity, painting a linguistic tapestry across the digital realm.
Meta’s share price played a capricious game during the event, briefly ascending before settling back into familiar waters, a mysterious reflection of the enigmatic tides that govern investor sentiment.
OpenAI’s Transformational Tale
Rumblings of change echoed through the halls of OpenAI this week, as whispers of restructuring swirled around the once non-profit entity. Speculation mounted following a report on OpenAI’s alleged plans to metamorphose into a for-profit corporation – a transformation aimed at enticing the gaze of potential investors gazing upon these changing landscapes.
Amidst this technological turmoil, Chief Technology Officer Mira Murati and two other executives signaled their departure, foreshadowing a shifting of the winds within OpenAI’s corridors. As the non-profit organization ventures forth into uncharted territory, CEO Sam Altman stands poised to acquire his first equity stake, a golden fleece potentially valued at US$150 billion, should the stars align in this cosmic ballet of corporate evolution.
