The ebb and flow of economic data molded Wall Street and the crypto sphere as Q3’s climax neared.
Simultaneously, Micron Technology’s robust earnings sparked hopes for the future of artificial intelligence (AI), while Meta Platforms introduced fresh AI innovations.
Behind the curtains at OpenAI, whispers of exec shuffles and reorganization stirred intrigue.
Stay abreast of the tech landscape’s pulse with the Investing News Network’s roundup.
1. U.S. Labor Market Shines to End the Week
The week kicked off on a bright note as Wall Street’s leading gauges inched up on Monday (September 23). September’s swift S&P Global Services Purchasing Managers’ Index revealed a reading of 55.4, slightly besting the anticipated 55.2, bolstering optimism in the economy’s health.
Nonetheless, Ladenburg Thalmann Asset Management’s top gun, Phil Blancato, hinted at the market’s high hopes for more rate slashes from the U.S. Federal Reserve, potentially sparking volatility in forthcoming weeks.
China’s proclamation of vigorous stimulus actions to bolster its economy on Tuesday (September 24), including floating special sovereign bonds worth around 2 trillion yuan, ignited a global stock surge.
The S&P/TSX Composite Index (INDEXTSI:OSPTX), S&P 500 (INDEXSP:.INX), and Nasdaq Composite (INDEXNASDAQ:.IXIC) all notched fresh closing milestones. Gains in chip titans like Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) propelled the PHLX Semiconductor Sector (INDEXNASDAQ:SOX) by 1.23 percent.
On Wednesday morning (September 25), equities held steady, with the Nasdaq Composite dipping by 0.13 percent post the opening bell. Come midday, surges in behemoths NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL), had reversed early setbacks for the tech-rich index. It eventually closed a mere 0.17 percent above its opening mark while the S&P 500 and S&P/TSX Composite Index both retreated.
Thursday’s (September 26) weekly initial jobless claims data for the U.S. unveiled 218,000 fresh claims versus the projected 225,000, signaling a labor market upswing.
The tech sphere stood tall with Micron Technology’s pivot, fortifying AI prospects as OpenAI danced in whispers of change.
Market Momentum and Corporate Triumphs
Stock Market Breaks Records Boosted by Micron’s Optimistic Outlook
The S&P/TSX Composite Index reached a historic high closing above 24,000, the second time this week, driven by the optimistic forecast from Micron, announced post-Wednesday’s bell. The PHLX Semiconductor Sector surged by 3.77 percent, with chip stocks leading the charge. The S&P 500 hit an intraday high of 5,767.37 before easing to 5,745.37, still up by 0.4 percent. Notably, the Russell 2000 (INDEXRUSSELL:RUT) emerged as the top gainer on Thursday, closing 0.62 percent higher.
Bitcoin’s Price Unlocks Amidst Favorable Conditions
The digital asset market witnessed a breakout as Bitcoin surpassed the critical US$65,000 resistance level, buoyed by the Fed’s rate cut. While Asian stocks rallied, Bitcoin and Ether remained stable early in the week, hinting at a potential upsurge. Bitcoin exchange-traded funds (ETFs) drew significant investments, with inflows of US$136 million recorded, the largest in almost a month.
Impressive Q4 Results Propel Micron’s Shares
Micron unveiled robust results for its fourth fiscal quarter and full-year 2024, propelling its stock price by 18 percent on Thursday. By Friday’s close, Micron shares stood at US$107.47, marking a stellar 16 percent weekly gain and a remarkable 9.82 percent monthly increase.
With Q4 revenue surging to US$7.75 billion, surpassing the previous quarter’s US$6.81 billion, and a significant annual revenue of US$25.11 billion compared to US$9.57 billion the previous year, Micron showcased its financial prowess. President and CEO Sanjay Mehrotra expressed confidence in the company’s trajectory, forecasting record revenue in fiscal Q1 and a substantial profitability improvement in fiscal 2025.
Innovation and Restructuring: A Tale of Two Paths in the Tech Industry
Riding the Semiconductor Wave
In a week characterized by resounding confidence in the semiconductor industry, Micron Technology stands out as a beacon of stability. With a projected revenue of about US$8.7 billion for the first fiscal quarter of 2025, the company paints a picture of unwavering demand for its cutting-edge semiconductor chips. This positive outlook by Micron has also had a ripple effect on other chip stocks, buoying the overall market sentiment.
The market echoed Micron’s success, with NVIDIA, Taiwan Semiconductor Manufacturing Company (TSMC), Advanced Micro Devices (AMD), and Qualcomm all experiencing a lift in their share prices. These giants in the semiconductor space saw their stocks surge, reflecting the optimistic market response to Micron’s performance.
Meta’s Ambitious Unveilings
The aftermath of Meta’s Connect event was nothing short of eventful, with the tech conglomerate showcasing a slew of AI innovations. Meta revealed its plans to roll out the budget-friendly Meta Quest 3S, heralding a new era in virtual reality hardware. The introduction of the Wayfarer Ray-Ban Meta smart glasses, equipped with AI-powered features, marked a significant leap in wearable technology.
CEO Mark Zuckerberg took the stage to unveil upcoming AI enhancements, promising features like lip-synced translations of Reels and advanced voice chat options. Notably, the event offered a sneak peek at the long-awaited Orion AR glasses, showcasing Meta’s commitment to the future of augmented reality.
While Meta’s share price fluctuated during the event, the unveiled innovations left a lasting impression on both consumers and investors, setting the stage for the company’s future trajectory in the tech landscape.
OpenAI’s Transformation
Rumors swirled around OpenAI this week, fueled by reports of a potential restructuring into a for-profit entity. The speculated move aims to position the non-publicly traded company as a more enticing prospect for investors, potentially reshaping the AI industry’s dynamics. The anticipated restructuring would see CEO Sam Altman holding his first equity stake, marking a significant milestone in the company’s evolution.
Against this backdrop of change, news of CTO Mira Murati’s departure and the impending shift in OpenAI’s ownership structure created a buzz in the tech community. As the company navigates this transformation, observers eagerly await further developments that could redefine its role in the competitive tech sector.