Stock Market Today: Nasdaq Leads Gains as AI Boom Continues
The stock market on Friday, December 13, 2024, is showing mixed performance, with technology stocks leading the way. As investors eagerly ask, “why is the market up today?” the answer lies in the ongoing artificial intelligence (AI) boom and positive forecasts from major tech companies.
Market Indexes: A Mixed Picture
As of the latest stock market today update:
– The S&P 500 is up 0.24% at 6,065.94 points
– The Nasdaq Composite is outperforming, rising 0.62% to 20,026.16
– The Dow Jones Industrial Average is slightly down 0.16% at 43,845.59
This performance comes after a challenging Thursday session where all three major indexes closed lower due to profit-taking and mixed economic data.
AI Boom Drives Tech Sector
The tech-heavy Nasdaq is leading gains today, primarily fueled by the ongoing enthusiasm surrounding artificial intelligence. Chipmaker Broadcom (AVGO) is at the forefront of this rally, surging an impressive 21.42% after providing an upbeat forecast for AI chip demand.
Other tech giants benefiting from the AI wave include:
– Nvidia (NVDA): Up 1.21%
– Marvell Technology (MRVL): Gaining 10.48%
– SoundHound AI (SOUN): Rising 7.77%
Major Stock News
Several companies are making headlines in today’s market news today:
1. Tesla (TSLA): The electric vehicle maker is up 1.42%, continuing its strong performance this year.
2. Costco (COST): Shares are up 1.31% following strong e-commerce sales in its latest quarterly report.
3. UnitedHealth Group (UNH): The healthcare giant is down 0.87%, continuing its slide from yesterday when it was the Dow’s biggest loser.
4. Salesforce (CRM): The cloud software company is up 1.8% after receiving an upgrade from KeyBanc.
Upcoming Market Events
Investors are closely watching several key events that could impact the stock market today and in the coming week:
1. Federal Reserve Meeting: The CME FedWatch tool shows a 96.4% probability of a 25-basis-point rate cut at the Fed’s December 17-18 meeting. This would bring the total reduction in the Fed funds rate to 1% in 2024.
2. Inflation Data: Recent November inflation and labor data have increased market participants’ optimism about a potential rate cut.
3. Economic Indicators: Traders will be watching for any additional economic data that could influence the Fed’s decision.
Market Sentiment and Outlook
Despite recent volatility, the overall market sentiment remains cautiously optimistic. The VIX, often referred to as the fear gauge, is up 2.5% to 13.92, indicating some uncertainty among investors.
Looking ahead, market participants believe that the gradually reducing inflation rate and solid fundamentals of the U.S. economy could pave the way for a soft landing. However, some Fed officials have cautioned about a slower pace of easing going forward, which could impact market expectations for 2025.
Conclusion
As we navigate through this dynamic stock market today, the AI boom continues to be a significant driver of growth, particularly in the tech sector. Investors should keep a close eye on the upcoming Fed meeting and economic indicators, which will likely shape market trends in the coming weeks. While optimism prevails, caution is advised given the mixed performance across different sectors and ongoing economic uncertainties.
Remember to stay informed with the latest market news today and consult with financial advisors before making investment decisions in this ever-changing market landscape.
