A myriad of economic forces stirred up Wall Street and the crypto market as the final full week of Q3 reached a climax.
Simultaneously, Micron Technology’s (NASDAQ: MU) stellar earnings report ignited anticipation for the future of artificial intelligence (AI), while Meta Platforms (NASDAQ: META) introduced an array of innovative AI features and products.
At OpenAI, talks of executive shake-ups and potential restructuring have set tongues wagging.
Stay abreast of the latest tech happenings with the Investing News Network’s comprehensive roundup.
1. Robust US Job Data Wraps Up the Week
Kicking off the week on a high note, Wall Street’s major indices began slightly higher on Monday (September 23). The preliminary S&P Global Services Purchasing Managers’ Index for September surpassed expectations by registering at 55.4, slightly ahead of the projected 55.2, instilling further confidence in the economy.
Nonetheless, CEO Phil Blancato of Ladenburg Thalmann Asset Management Phil Blancato cast a shadow of doubt, expressing concerns that the market’s anticipation of additional rate cuts by the US Federal Reserve might disrupt stability in the forthcoming weeks.
On Tuesday (September 24), China’s announcement of significant stimulus measures to bolster its economy, including the issuance of special sovereign bonds amounting to about 2 trillion yuan, sent stocks soaring across global markets.
The S&P/TSX Composite Index (INDEXTSI:OSPTX), S&P 500 (INDEXSP:.INX), and the Nasdaq Composite (INDEXNASDAQ:.IXIC) all attained new closing records. Momentum in chip stocks like Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) propelled the PHLX Semiconductor Sector (INDEXNASDAQ:SOX) by 1.23 percent.
Wednesday (September 25) saw stocks trading flat in the morning, with the Nasdaq Composite dipping by 0.13 percent after the opening bell. However, by midday, the upticks in tech giants NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) offset previous losses for the tech-laden index. Ultimately, it closed a mere 0.17 percent above its opening figure, while the S&P 500 and S&P/TSX Composite Index both experienced declines.
As Thursday (September 26) unfolded, the weekly initial jobless claims data for the US unveiled 218,000 new claims, slightly lower than the estimated 225,000, signaling a strengthening labor market.
The tech sector emerged as one of the vibrant sparks amidst the economic whirlpool, with Micron’s meteoric rise symbolizing a fusion of innovative prowess and investor confidence.
The Rise and Resilience of Key Market Players
1. Market Soars as Micron’s Forecast Boosts Confidence
Midday saw impressive gains on the stock market, with the S&P/TSX Composite Index setting a new record above 24,000, fueled by Micron’s optimistic forecast. The PHLX Semiconductor Sector surged 3.77 percent while the S&P 500 hit an intraday high before settling slightly lower. Notably, the Russell 2000 outshone other indices, closing 0.62 percent higher.
2. Bitcoin Unlocks Potential as Market Dynamics Shift
The digital asset market kicked off the week on a high note following the Fed’s rate cut. Bitcoin faced a significant resistance level at US$65,000, but prevailing market conditions hinted at a breakthrough. While Bitcoin and Ether remained steady, altcoins made modest gains, indicating a correlation with US economic data.
Bitcoin ETFs sustained momentum, garnering substantial inflows, while Ether’s price wavered post the SEC’s decision to postpone options trading approval for spot Ethereum ETFs. The market surged on Thursday, led by positive job data, propelling Bitcoin past US$65,000 and Ethereum hitting a weekly high midday on Friday.
3. Micron Shines Bright with Stellar Q4 Results
Following the release of its fourth fiscal quarter results, Micron’s stock price soared by 18 percent, hitting US$107.47 by week’s end. The remarkable performance translated to a 16 percent weekly gain and a 9.82 percent monthly increase. Notably, Micron’s Q4 revenue spiked to US$7.75 billion from the previous quarter’s US$6.81 billion and a significant jump from the US$4.01 billion reported a year ago.
Micron’s annual revenue rose to US$25.11 billion, up significantly from the previous year’s US$9.57 billion. CEO Sanjay Mehrotra expressed optimism, noting a staggering 93 percent year-over-year revenue growth in fiscal Q4, driven by strong demand in data center DRAM products and high bandwidth memory.
Market Insights and Innovations in the Tech World
Positive Performance Projections for Micron Technology
Micron Technology’s optimistic outlook for the first fiscal quarter of 2025, with projected revenue of around US$8.7 billion, signifies a robust demand for semiconductor chips. The company’s guidance instills confidence and propels expectations for continued success in the industry.
Impact of Micron’s Success on Chip Stocks
Following Micron’s strong showing, a ripple effect was felt across the chip sector. Notably, NVIDIA, Taiwan Semiconductor Manufacturing Company, Advanced Micro Devices, and Qualcomm experienced significant share price increases, reflecting the positive market sentiment driven by Micron’s performance.
Meta’s AI Innovations Unveiled at Connect Event
Meta’s recent showcase of cutting-edge AI technologies at the Connect event introduced a range of innovative products, including the budget-friendly Meta Quest 3S headset and the revolutionary Wayfarer Ray-Ban Meta smart glasses. CEO Mark Zuckerberg presented upcoming AI features, positioning Meta at the forefront of tech advancement.
The event also provided a glimpse of the long-awaited Orion augmented reality glasses, emphasizing Meta’s commitment to pushing the boundaries of technology. Additionally, the release of the Llama 3.2 language model underscores Meta’s dedication to enhancing user experiences across various platforms and devices.
Rumors Surrounding OpenAI’s Restructuring
The speculation surrounding OpenAI’s alleged transition to a for-profit entity has captured industry attention. Reports suggest that the move aims to attract investors by restructuring the organization. The anticipated changes, including Chief Technology Officer Mira Murati’s departure, indicate a potential shift in OpenAI’s operational and ownership structure, with CEO Sam Altman poised to gain his first equity stake in the company.
As the tech landscape continues to evolve, these developments underscore the dynamic nature of the industry and the strategic maneuvers adopted by key players to stay competitive and drive innovation forward.
