AI Drives Tech Rebound, Oil Soars, Bitcoin Tumbles: What’s Driving Markets Thursday?
By Benzinga
During midday Thursday trading in New York, U.S. stocks displayed mixed performance, with the technology sector outperforming others as investors maintained a bullish outlook on artificial intelligence, temporarily setting aside concerns about interest rates.
Additionally, economic data released Thursday morning revealed a robust labor market, with unemployment benefits registering well below expectations for the last week.
Atlanta Fed President Raphael Bostic stated his preference for the start of the rate reduction cycle in the third quarter, emphasizing the importance of avoiding premature cuts that could reignite demand and price pressures, aligning with recent comments made by his colleagues. He mentioned a willingness to initiate rate cuts before July should compelling evidence suggest faster-than-expected inflation deceleration.
The U.S. dollar index (DXY) moved higher, on track to close at its highest level since Dec. 12. Treasury yields also kicked higher, with the 10-year yield rising to 4.14% and the 30-year yield reaching 4.38%. Bonds tumbled, with the iShares 20+ Year Treasury Bond ETF (NYSE:TLT), falling 1%.
Oil prices, as tracked by the United States Oil Fund (NYSE:USO), experienced a 1.9% upswing after the IEA adjusted its 2024 oil demand growth forecast to 1.24 million bpd, reflecting a 180,000-bpd increase. The revision attributed this boost to improved economic growth and reduced crude prices in the fourth quarter. Furthermore, ongoing geopolitical tensions in the Middle East and between Iran and Pakistan contributed to the continued support for crude prices.
Bitcoin (CRYPTO: BTC) experienced a sharp 3% decline, dropping below the $42,000 threshold. This cryptocurrency has witnessed a significant 15% decrease since last week’s surge fueled by speculation about the potential approval of a spot Bitcoin ETF.
Thursday’s Performance In US Major Indices, ETFs
| Index | Price | % |
|---|---|---|
| Nasdaq 100 | 16,848.75 | 0.7% |
| S&P 500 | 4,746.44 | 0.2% |
| Dow Jones | 37,210.41 | -0.2% |
| Russell 2000 | 1,903.12 | -0.4% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.2% to $473.23, the SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.1% down to $372.38 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) was trading 0.7% higher to $410.20, according to Benzinga Pro data.
Sector-wise, the Technology Select Sector Fund (NYSE:XLK) outperformed, up 1.2%, followed by the Communication Services Select Sector Fund (NYSE:XLC).
The Utilities Select Sector Fund (NYSE:XLU) was the laggard, down 1.4%, while the Real Estate Select Sector SPDR Fund (NYSE:XLRE) witnessed another 1% decline.
On an industry level, the VanEck Semiconductors ETF (NYSE:SMH) rose the most, up 2.2%. Clean energy stocks underperformed, with the Invesco Wilderhill Clean Energy ETF (NYSE:PBW) down 2.1%.
Thursday’s Stock Movers
- NovoCure Ltd. (NASDAQ:NVCR) surged 21% as the FDA accepted its application to use Tumor Treating Fields therapy with standard systemic treatments for non-small cell lung cancer.
- Hertz Global Holdings (NASDAQ:HTZ) gained nearly 9% following Morgan Stanley’s upgrade from Equal-weight to Overweight, prompted by the rental car company’s reduction of its electric vehicle fleet.
- Tesla Inc. (NASDAQ:TSLA) declined by 2.6% as Barclays lowered its price target from $260 to $250 while maintaining an Equal weight rating on the stock.
- Medium and smaller-sized chipmakers, in comparison to NVIDIA Corp. (NASDAQ:NVDA) and Advanced Micro Devices Inc. (NASDAQ:AMD), emerged as top daily performers on the Nasdaq 1000 exchange. Marvell Technology, Inc. (NASDAQ:MRVL), QUALCOMM Incorporated (NASDAQ:QCOM), Applied Materials, Inc. (NASDAQ:AMAT), Lam Research Corporation (NASDAQ:LRCX) and ASML Holding N.V. (NASDAQ:ASML) all recorded gains ranging between 3% and 4% for the day.
- Discover Financial Services (NYSE:DFS) and KeyCorp (NYSE:KEY) fell by 10% and 5.8%, respectively, after both companies missed last quarter’s earnings estimates.
- Other companies reacting to earnings are Fastenal Company (NASDAQ:FAST) (up 5.9%), Truist Financial Corporation (NYSE:TFC) (down 1%) and M&T Bank Corporation (NYSE:MTB) (flat).
Photo via Pixabay.
