Tech Stocks Surge as Google Unveils Gemini and Traders Anticipate Key Jobs Report

Stocks in the US experienced a significant jump on Wednesday, with the Nasdaq leading the charge with a rally of over 1%. The surge was largely attributed to the impressive performance of Alphabet shares.

Google's Gemini Announcement Drives Tech Stocks Higher

US stocks, particularly the tech-heavy Nasdaq, showed strong gains on Thursday as investors eagerly awaited a crucial report from the Labor Department scheduled to be released on Friday. The S&P 500 also rebounded after three consecutive sessions of losses. The Nasdaq, in particular, gained over 1% with renewed excitement surrounding artificial intelligence (AI) technologies presented by Google.

Alphabet, the parent company of Google, experienced a surge of as much as 6.4% in its stock price following the announcement of its ChatGPT competitor, Gemini. By the end of the trading day, the stock had closed 5.34% higher at $138.45 per share.

Job Market Data and Interest Rate Speculation

The recent job openings and private payrolls data fell short of expectations, reinforcing speculations that interest rates may decrease in the coming year. Jamie Cox, managing partner for Harris Financial Group, noted that although the jobs market remains strong, there are signs of change outside the data. Cox suggested that significant job cuts may occur in the near future, surprising many individuals.

The upcoming employment data, set to be released on Friday, will provide central bankers with additional information to guide their monetary policy decisions at the December FOMC meeting.

Market Closing Figures

At the close of the market on Tuesday, the major US indexes stood as follows:

• S&P 500: 4,585.59, up 0.8%
• Dow Jones Industrial Average: 36,117.57, up 0.18% (+63.14 points)
• Nasdaq Composite: 14,339.99, up 1.37%

Other Noteworthy Developments

Several other significant events are currently unfolding in the market:

• Investors are showing strong interest in Google's Gemini as a competitor to ChatGPT.
• Jeremy Grantham's GMO has categorized mega-cap tech stocks into winners and losers.
• SEC Chairman Gary Gensler has cautioned about the potential herding effect of AI technologies on the markets.
• Bank of America predicts that the 10-year Treasury yield may plunge to its lowest level in two years.
• The substantial decline in mortgage rates, comparable to the drop in 2008, is boosting homebuilder stocks to new highs.
• Janet Yellen has acknowledged that bond-market movements can complement the Federal Reserve's monetary policy.
• The number of closures for exchange-traded funds (ETFs) is approaching a record high as certain popular concepts fail.
• Experts have identified three catalysts that are expected to drive stocks higher in 2024.
• Mohamed El-Erian believes that markets may be delaying rate cuts by ignoring signals from the Federal Reserve.

Commodities and Crypto

Here is an overview of the latest developments in commodities, bonds, and crypto:

• Oil prices saw a slight increase after Wednesday's sharp decline, with West Texas Intermediate rising by 0.4% to $69.66 per barrel. Brent crude, the international benchmark, also rose by 0.16% to $74.43 per barrel.
• Gold experienced a marginal decrease of 0.08% to $2,046.20 per ounce.
• The 10-year Treasury yield rose by two basis points to 4.144%.
• Bitcoin dipped by 1.9% to $43,108.

Original article on Business Insider.

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By: prosen@insider.com (Phil Rosen)
Title: Tech Stocks Surge as Google Unveils Gemini and Traders Anticipate Key Jobs Report
Sourced From: markets.businessinsider.com/news/stocks/stock-market-news-today-google-tech-nasdaq-bonds-jobs-fed-2023-12
Published Date: Thu, 07 Dec 2023 21:06:10 +0000