Nasdaq 100 Rockets 1.5% as Wall Street Embraces AI

Nasdaq 100 Surges Amidst AI Optimism

In the latest market developments, traders showed resilience in the face of uncertainties surrounding the US jobs report, driving the Nasdaq 100 up over 45% for the year. Alphabet Inc. experienced a nearly 5.5% increase following the release of Gemini, Google's "largest and most-capable AI model." Advanced Micro Devices Inc. also saw gains after announcing its new accelerator chips would outpace competitors in running AI software.

Market experts expressed optimism about the potential of artificial intelligence to significantly boost productivity in 2024 and beyond. The Nasdaq 100 rose 1.5%, while the S&P 500 ended a three-day decline. Treasury yields edged higher, and the Bank of Japan's hawkish signals led to a 2% increase in the yen and a decline in the dollar.

The anticipation of the US jobs report was accompanied by a notable drop in continuing applications for jobless benefits, though claims remained near a two-year high. Analysts offered varying perspectives on the labor market, with some seeing signs of a slowdown and others anticipating a pickup in hiring in November.

Concerns about potential rate cuts and cross-asset volatility were highlighted, with JPMorgan Chase & Co. warning that substantial rate cuts are necessary for sustained market rallies. Goldman Sachs cautioned that US stocks may be "vulnerable" to macro shocks, while Bank of America Corp.'s strategists suggested that the S&P 500 could rise next year with broader market leadership.