0
0
Stock Market Performance
On a strong day for U.S. equities, all three major stock indexes experienced gains following a substantial selloff the day prior. Notably, Google’s parent company, Alphabet, achieved a significant milestone by surpassing the $2 trillion market capitalization mark on Friday.
Are Self-Driving Cars Safe Enough?
The safety of self-driving cars remains a topic of interest and debate. As technology continues to advance, questions arise regarding the readiness of autonomous vehicles to operate safely on public roads.
Macro-Level Economic Analysis
In March, the Personal Consumption Expenditures index displayed an acceleration to 2.7%, compared to 2.5% in February. This index, which excludes food and energy prices, serves as a key inflation metric monitored by the Federal Reserve. The sustained elevation of inflation levels suggests diminished prospects for substantial interest rate reductions, particularly as inflation surpasses expectations and challenges the Fed’s 2% target. Over the course of multiple hikes since 2022, the central bank has implemented 11 interest rate increases.
The Dow Jones Industrial Average concluded the day with a 0.4% increase of 153 points, settling at 38,239. Concurrently, the S&P and Nasdaq indexes achieved their most robust weekly performances since November, with gains of 1% and 2% respectively.
AI Empowers Google’s Market Cap Surge
Alphabet, the parent company of Google, witnessed a remarkable rise in market capitalization to over $2 trillion on Friday. This accomplishment was propelled by a surge in the stock value, partially attributed to advancements in generative artificial intelligence technology.
Google’s stocks, both Class A and C, soared to new 52-week highs, experiencing growth of approximately 10% by the close of the markets. These significant gains positioned Google as a standout performer in the Nasdaq and a top constituent of the S&P 500. Consequently, Google’s market cap soared to around $2.14 trillion by the afternoon.
Microsoft Stock Benefits from AI Expansion
Microsoft observed an uptick in its stock value following the release of fiscal third-quarter earnings that surpassed analyst expectations. With reported earnings per share of $2.94, exceeding the anticipated $2.82 per share, the tech giant anticipates fourth-quarter revenue to fall within the range of $63.5 billion to $64.5 billion.
Furthermore, Microsoft emphasized the expansion of its cloud computing business and the integration of AI technology into its services. Notably, AI services contributed 7 percentage points to the revenue growth of Azure and other cloud services, marking an increase from the 6 percentage points observed in the previous quarter. Microsoft stock closed on a positive note, displaying a 2% increase.
Intel Stock Declines Due to Revenue Forecast
Intel revealed its first-quarter earnings results, outperforming estimates; however, the stock faced a decline following a second-quarter revenue projection that fell below Wall Street’s expectations. With an anticipated revenue range of $12.5 billion to $13.5 billion for the upcoming quarter, Intel failed to meet analysts’ projections of $13.63 billion. Consequently, Intel’s stock witnessed a notable decrease of over 9% by the end of the trading day.
Growth in AI Sector
AI-centered stocks demonstrated resilience and growth on Friday, with Nvidia and Super Micro Computer experiencing increases of more than 6% and 8.5% respectively by the market close. The upward trend in AI stocks was accentuated by the appointment of Sam Altman from OpenAI and Jensen Huang from Nvidia to a newly established federal AI safety board. This board is tasked with advising the Department of Homeland Security on strategies to safeguard various sectors, including the economy and healthcare, from potential AI-related threats.
Trump Media’s Nasdaq Debut
Trump Media, the entity behind former President Donald Trump’s Truth Social platform, witnessed a rise in stock value exceeding 7.5% by the close of trading. Having gone public on the Nasdaq under the ticker symbol DJT following its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC), Trump Media continues to navigate the dynamic stock market environment since its inception.
Image/Photo credit: source url
