A whirlwind of market shifts from economic data to cryptocurrency trends characterized the last week of Q3 on Wall Street.
Notably, Micron Technology (NASDAQ:MU) reported stellar earnings, igniting bullish sentiments around future artificial intelligence (AI) prospects.
The latest tech buzz revolves around Meta Platforms’ (NASDAQ:META) unveiling of cutting-edge AI innovations while over at OpenAI, executive exits and restructuring rumors fuel turbulent conjectures.
Stay updated on the dynamic tech landscape with the Investing News Network’s comprehensive review.
1. Positive US Employment Figures Close the Week
Optimism painted the start of the week as Wall Street’s key indices edged up slightly on Monday (September 23).
The month’s preliminary S&P Global Services Purchasing Managers’ Index, registering 55.4 against the anticipated 55.2, underscored a confident outlook on the economy.
Nevertheless, Phil Blancato, CEO of Ladenburg Thalmann Asset Management, hinted at potential market turbulence, cautioning against excessive expectations of US Federal Reserve rate cuts.
China’s unveiling of expansive stimulus initiatives on Tuesday (September 24), including issuing approximately 2 trillion yuan in special sovereign bonds, triggered a global stock surge.
The S&P/TSX Composite Index (INDEXTSI:OSPTX), S&P 500 (INDEXSP:.INX), and Nasdaq Composite (INDEXNASDAQ:.IXIC) all clinched new closing milestones, with chip stocks like Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) propelling the PHLX Semiconductor Sector (INDEXNASDAQ:SOX) up by 1.23%.
Wednesday (September 25) commenced with stagnant trade as the Nasdaq Composite dipped by 0.13% post-opening bell.
However, midday resurgence in tech giants such as NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) reversed initial losses, leading the tech-centric index to a meager 0.17% gain by closing, while the S&P 500 and S&P/TSX Composite Index retreated.
Thursday’s (September 26) US weekly initial jobless claims data revealing 218,000 new claims, lower than the anticipated 225,000, signaled an uptick in the labor market.
The tech sector was among
Micron Shines Bright: A Week of Stellar Gains and Uplifting Results
Micron’s Upbeat Forecast Sparks Market Surge
Thursday saw a surge in the market, with the S&P/TSX Composite Index hitting a new record above 24,000, the second milestone this week. The PHLX Semiconductor Sector soared by 3.77 percent, driven by positive news from Micron, whose shares climbed 18 percent after the company shared a bullish forecast post-Wednesday’s closing bell. The S&P 500 reached an intraday record of 5,767.37.
Leading the gains on Thursday was the Russell 2000, closing 0.62 percent higher, marking an impressive performance for the day.
Bitcoin Breaks Free from Price Lock
Recent days have seen notable movement in the digital asset market. The Fed’s rate cut provided a boost, propelling Bitcoin to cross the US$65,000 resistance level. Amidst favorable market conditions and historical trends, a breakout seemed imminent. While Bitcoin and Ether remained steady earlier in the week, altcoins made modest gains. Interestingly, the lack of movement in Bitcoin and Ether as Asian stocks rallied hinted at a strong correlation with US economic data.
Furthermore, Bitcoin exchange-traded funds (ETFs) continued to gather momentum, reporting substantial inflows of US$136 million, the highest in nearly a month. Ether faced a slight dip following the US SEC’s decision to delay options trading approval on Ethereum ETFs until November.
Micron Delivers Uplifting Q4 Results
Wednesday marked the release of Micron’s fourth fiscal quarter and full-year 2024 results, driving an 18 percent increase in share price the following morning. By the week’s close, Micron’s shares stood at US$107.47, representing a remarkable 16 percent surge for the week and a 9.82 percent gain for the month. The company reported a Q4 revenue of US$7.75 billion, surpassing the previous quarter’s US$6.81 billion and last year’s US$4.01 billion for the same period.
For the full year, Micron’s revenue hit US$25.11 billion, a substantial increase from the US$9.57 billion generated in the prior year. Micron’s President and CEO, Sanjay Mehrotra, expressed optimism, highlighting the robust 93 percent year-over-year revenue growth in fiscal Q4. Mehrotra foresees record revenue in fiscal Q1 of 2025, along with significant profitability improvements, positioning Micron favorably moving forward.
Positive Surges and Potential Shifts: Tech Industry Updates
Amidst Optimism, Micron Technology Bolsters Semiconductor Expectations
As the week concluded, Micron Technology confidently projected revenue for its first fiscal quarter of 2025, anticipating a figure around US$8.7 billion, plus or minus US$200 million. This optimistic outlook not only reflects Micron’s own buoyancy but also signifies a broader confidence in the ongoing demand for semiconductor chips, a cornerstone of the modern tech landscape.
The ripple effect of Micron’s positive forecast resonated across the market, nudging other chip makers towards green territory. NVIDIA, Taiwan Semiconductor Manufacturing Company (TSMC), Advanced Micro Devices (AMD), and Qualcomm all enjoyed upward momentum in their share prices, reflecting the positive vibes emanating from Micron’s camp.
Meta’s Mix of Innovation Inspires Both Curiosity and Caution
Meta, the ever-adapting tech giant, recently unveiled a gamut of new AI-driven innovations during its Meta Connect event, held over Wednesday and Thursday. The event showcased Meta Quest 3S, a budget-friendly offering set to supplant existing models. Additionally, limited-edition Wayfarer Ray-Ban Meta smart glasses teased consumers with the promise of live AI-powered assistance for everyday tasks.
CEO Mark Zuckerberg’s reveal of upcoming AI features, including the tantalizing potential of lip-synced translations for Reels and advanced voice chat capabilities, left attendees in awe. The event’s pièce de résistance was the preview of Orion, Meta’s AR glasses, offering a glimpse of the future, albeit with the disclaimer that they aren’t yet market-ready.
To add to the excitement, Meta introduced Llama 3.2, its latest language model iteration, tailored for edge and mobile devices. Foreign language barriers may soon be a thing of the past, as Llama 3.2 boasts enhanced multilingual support across eight languages, promising a more connected world.
OpenAI’s Alleged Restructuring Sparks Investor Intrigue
Whispers of change enveloped OpenAI this week, following rumors of an impending shift towards for-profit status. If the speculations hold true, this move could potentially position the company as a more attractive venture for prospective investors, even in the absence of being publicly traded.
Chief Technology Officer Mira Murati’s departure announcement, accompanied by news of additional executive exits, set tongues wagging. Sources hint at a revamped corporate structure that would endow CEO Sam Altman with his first equity stake, potentially valued at a staggering US$150 billion if the plans culminate. The timing of this intriguing metamorphosis remains shrouded in mystery.
