US stocks rose sharply today, led by technology companies. The Dow Jones index gained 0.71 percent to close trading at 52,048.83 points. The broader S&P 500 index rose 1.49 percent to 7,764.70 points, and the Nasdaq Composite climbed 2.26 percent to 27,122.09 points, closing at a new record high.
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Tech stocks drove the market upward
Chipmakers contributed significantly to the gains, with Advanced Micro Devices (AMD) seeing its shares jump nearly ten percent. The company’s market value surpassed the one-trillion-dollar mark for the first time. According to Reuters, investors pointed to signs that spending related to artificial intelligence continues to grow, despite recent warnings about the technology’s safety.
Investor sentiment was also boosted by falling oil prices, driven by hopes of progress in resolving the conflict in the Middle East. However, concerns persist in the stock market over further interest rate hikes in the United States. Investors are also awaiting the outcome of Chinese President Xi Jinping’s visit to the USA, which will take place this week.
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Dollar strengthens as markets watch rates and the Japanese yen
On the foreign exchange market, the US dollar strengthened slightly on prospects of further interest rate increases in the US. The euro lost about 0.2 percent against the dollar shortly after 10:00 PM CEST, trading near $1.1460. Against the Japanese yen, the dollar gained approximately 0.3 percent to 157.4 JPY. The Japanese currency remains under pressure despite Friday’s rate hike in Japan to 1.25 percent, the highest level in 31 years.
Investors are now watching for any signs of intervention by Tokyo in the foreign exchange markets. Analyst Marc Chandler of Bannockburn Capital Markets said that at the current exchange rate, he does not consider intervention very likely, but he also pointed to nervousness in the markets. The US central bank raised its benchmark interest rate by a quarter percentage point on Wednesday to a range of 3.75 to 4.00 percent, and its officials indicated they expect further rate increases in the coming months.
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Source: ČTK
