Amazon’s $38 billion agreement to support OpenAI’s cloud operations has led to a notable 4% increase in its shares, revitalizing investor interest in artificial intelligence (AI) stocks. This significant partnership is pushing tech stocks to the forefront, contributing to gains in the S&P 500 and Nasdaq, while the Dow faces challenges in weaker sectors. Despite the Federal Reserve’s recent interest rate cut, uncertainty remains due to the ongoing government shutdown. As the US dollar strengthens and Treasury yields decrease, focus shifts to upcoming earnings reports from companies like Palantir, AMD, and Qualcomm, which may reflect the outcomes of AI investments. Increased demand for AI technology is also boosting interest in data center real estate investment trusts (REITs), in contrast to struggling traditional property sectors. As the tech industry continues to dominate, investors are keenly watching whether increased AI spending translates into substantial earnings growth in the near future.
Source link
Share
Read more