A myriad of economic data influenced Wall Street and the crypto market as the final stretch of Q3 neared its conclusion.
Simultaneously, Micron Technology (NASDAQ:MU) delivered robust earnings, propelling expectations in the realm of artificial intelligence (AI), while Meta Platforms (NASDAQ: META) revealed cutting-edge AI features and products.
Within the domain of OpenAI, rumors of executive upheaval and a potential reorganization have ignited fervent speculation.
Stay informed with the latest insights from the Investing News Network’s tech roundup.
1. Encouraging US jobs data conclude the week
The week commenced on an optimistic note as Wall Street’s primary indices kicked off marginally higher on Monday (September 23). The preliminary S&P Global Services Purchasing Managers’ Index for September surpassed expectations at 55.4, slightly outstripping the anticipated 55.2, reaffirming positivity around the nation’s economic well-being.
Nonetheless, Phil Blancato, the CEO of Ladenburg Thalmann Asset Management, issued a word of caution, anticipating more rate cuts that the US Federal Reserve may implement, potentially ushering in volatility in the weeks ahead.
On Tuesday (September 24), China’s announcement of bold stimulus measures to bolster its economy, including the issuance of special sovereign bonds totaling around 2 trillion yuan, resonated globally, infusing exuberance into stocks across the board. The S&P/TSX Composite Index (INDEXTSI: OSPTX), S&P 500 (INDEXSP: .INX), and the Nasdaq Composite (INDEXNASDAQ: .IXIC) all notched new closing milestones. Upticks in chip giants like Qualcomm (NASDAQ: QCOM) and Intel (NASDAQ: INTC) drove the PHLX Semiconductor Sector (INDEXNASDAQ: SOX) up by 1.23 percent.
By midweek on Wednesday (September 25), stocks remained level, with the Nasdaq Composite initially dipping by 0.13 percent post the opening bell. However, rallies in key players such as NVIDIA (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL) managed to invert earlier declines for the tech-heavy index. The closing tally barely hovered 0.17 percent above the opening mark, whereas the S&P 500 and S&P/TSX Composite Index showed a downward trend.
Thursday’s (September 26) newly released weekly initial jobless claims data for the US, registering 218,000 fresh claims against the estimated 225,000, indicated a strengthening labor market.
The technology sector emerged as a frontrunner
The Market Renaissance: Micron’s Meteoric Rise and Bitcoin’s Breakout
1. Stock Market Surges on Micron’s Bright Outlook
As the closing bell chimed on Wednesday, Micron unveiled a rosy forecast, setting the stage for a market feat. The S&P/TSX Composite Index danced to a new all-time high beyond 24,000, marking its second milestone of the week. Chip stocks heralded gains, propelling the PHLX Semiconductor Sector by 3.77 percent. The S&P 500 waltzed to an intraday peak of 5,767.37 before a slight dip to 5,745.37, still celebrating a 0.4 percent ascent. The day’s crown, however, rested on the head of the Russell 2000 (INDEXRUSSELL:RUT), leading the pack with a 0.62 percent surge.
2. Bitcoin’s Liberation from Price Shackles
The week commenced with the digital asset domain enveloped in buoyancy from the Fed’s rate trim. While US$65,000 posed as a formidable barrier, whispers from historical data and propitious market tides hinted at an imminent emancipation. Bitcoin and Ether maintained a calm facade midweek, whereas altcoins relished modest gains. Their stillness juxtaposed with soaring Asian markets hinted at a closeness to US economic rhythms.
A thriving narrative culminated on Thursday, propelled by cheerful job reports. Bitcoin romped ahead, sealing its exuberance on Friday by soaring past the $65,000 threshold to trade above $66,000 for the first time in yonks. Similarly, Ethereum struck a harmonious note, hitting a crescendo at $2,721 by Friday’s midday.
3. Micron’s Marvelous Q4 Showmanship
Wednesday bore witness to Micron spilling the beans on its fourth fiscal quarter jam and full 2024 chronicle, captivating the market with an 18 percent share price leap at Thursday’s dawn. With week’s end, Micron’s stocks glittered at $107.47, flaunting a 16 percent weekly boost and a grand 9.82 percent uptick for the month.
The fiscal symphony sung by Micron in Q4 hit a crescendo at $7.75 billion in revenue, outshining the $6.81 billion of the prior quarter. Contrastingly, the same quarter of yesteryears only saw $4.01 billion lining Micron’s coffers. Their annual revenue swelled to $25.11 billion from $9.57 billion, painting a portrait of ascension.
“Micron trumpeted a 93 percent year-over-year revenue flourish in fiscal Q4, riding the crest of AI hunger propelling a vigorous climb of their data center DRAM wares and top-tier high-bandwidth memory. Their NAND revenue soared, steered by data center SSD sales crossing the $1 billion quarterly revenue milestone,” shared Micron’s President and CEO Sanjay Mehrotra in a resounding statement.
“We venture into fiscal 2025 clad in our prime competitive armor in Micron’s annals. We herald a record revenue zenith in fiscal Q1 and anticipate a hefty revenue record clothed in markedly enhanced profitability come fiscal 2025,” Mehrotra affirmed.
Recent Developments Rocking the Tech Industry Landscape
Stellar Micron Technology Performance Shakes Chip Stocks Market
As Micron Technology continues its upward trajectory, the semiconductor industry feels the ripples of confidence. Guided by the expectation of nearly US$8.7 billion in revenue for its first fiscal quarter of 2025, with a margin of error of merely US$200 million, Micron stands as a benchmark of optimism in the semiconductor chip market.
The positive vibes from Micron didn’t stay contained within its walls. A domino effect ensued, propelling other chip stocks to perform exceptionally. NVIDIA saw a 2.72 percent increase, while Taiwan Semiconductor Manufacturing Company saw an even bigger jump of 3.37 percent. Advanced Micro Devices and Qualcomm weren’t left behind either; boasting impressive price hikes of 3.22 percent and 4 percent, respectively.
Meta Unveils Cutting-Edge AI Innovations at Connect Event
Meta’s recent showcase at the Meta Connect event brought forth a treasure trove of revolutionary updates. Despite a slight dip in share prices by 0.44 percent post-event, the unveiling of the budget-friendly Quest 3S and the chic Wayfarer Ray-Ban Meta smart glasses piqued investor interest.
The event wasn’t short of surprises either. Meta’s CEO, Mark Zuckerberg, unveiled a roadmap for AI integration, introducing futuristic features like lip-synced translations for Reels and voice chat capabilities. Additionally, the debut of Meta’s full holographic augmented reality glasses, Orion, added another layer of intrigue. However, Zuckerberg’s disclaimer that Orion is still in the works left audiences eager for a launch date.
Meta also kept language enthusiasts on their toes with the release of Llama 3.2, a language model designed to fit on edge and mobile devices. Enhanced with multilingual support for eight languages, Llama 3.2 stands as a testament to Meta’s commitment to innovation and inclusivity.
OpenAI’s Alleged Restructuring Sparks Speculation
Rumors swirling around OpenAI’s rumored transition into a for-profit corporation continue to captivate industry observers. Following reports of an alleged restructuring move to attract investors, uncertainty looms over the future of this tech powerhouse.
The departure of Chief Technology Officer Mira Murati and two other executives only exacerbates the puzzle. If the restructuring goes through, CEO Sam Altman stands to gain his first equity stake in OpenAI, a move projected to valorize the company at a staggering US$150 billion. Despite the lack of a clear timeline, investors eagerly await OpenAI’s next play in this high-stakes game.