By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Markets > Dow Jumps 400 Points As This Billionaire Investor Says Stock Market Has Room To Grow
Markets

Dow Jumps 400 Points As This Billionaire Investor Says Stock Market Has Room To Grow

News Room
Last updated: 2023/05/17 at 4:35 PM
By News Room
Share
4 Min Read
SHARE

Topline

Stocks gained Wednesday thanks in part to another artificial intelligence-powered lift, as optimism emanating from the nascent technology keeps driving equities higher against a suboptimal macroeconomic backdrop.

Contents
ToplineKey FactsContraTangentForbes ValuationsKey Background

Key Facts

The Dow Jones Industrial Average, S&P 500 and tech-heavy Nasdaq each rose 1.2% or more Wednesday, just the third time that happened since the beginning of April.

Yet again driving the gains were tech heavyweights, as Tesla (up 4.4%), Nvidia (3.4%), Amazon 1.8%), Meta (1.5%), Alphabet (1.3%), Microsoft (0.9%) and Apple (0.3%) spiked, tacking on a combined $123 billion in market capitalization Wednesday.

Those giants, which have rallied more than $1 trillion year-to-date collectively thanks in large part to the AI boom, offered more fuel for optimistic investors Wednesday, with Amazon announcing AI enhancements to its Alexa devices and Nvidia unveiling a new partnership with ServiceNow to expand generative AI in cloud computing.

Hedge fund billionaire Steve Cohen declared Tuesday he has a “pretty bullish” outlook on the market as a whole thanks to streamlined corporate efficiency from AI, according to Bloomberg.

“I’m making a prognostication: We’re going up,” Cohen said about broad equity prices, explaining increased automation should widen corporate profits in coming quarters.

Contra

The S&P is up 9% year-to-date and excitement about what AI could mean for investors is at a fever pitch, but stocks will encounter a “rocky road” later this year, Wells Fargo strategist Scott Wren wrote in a Wednesday note to clients. Wren explained the strong likelihood of the U.S. slipping into a recession and his expectation that companies will fail to deliver on profit expectations thanks to thinner margins as interest rates remain high. Earnings for S&P companies declined by 6.8% year-over-year in the most recent quarter, according to recent Morgan Stanley research.

Tangent

Tesla, which hosted its annual meeting with shareholders after Tuesday’s market close, posted its second-largest daily stock gain since March, tacking on $25 billion in market value after it said it will advertise its vehicle for the first time and its CEO Elon Musk vowed to remain in charge for the foreseeable future. Musk, who drew the ire of several Jewish civil rights groups this week for touting conspiracies mirroring antisemitic tropes about billionaire George Soros, added the most to his net worth of anybody on earth Wednesday with a $5 billion bump.

Forbes Valuations

Musk holds the second-largest fortune in the world at $181 billion, while Cohen is owner of the planet’s 93rd-largest wealth pile at $17.5 billion. Cohen chairs Point72 Asset Management and owns the New York Mets MLB team.

Key Background

Since the late 2022 launch of the Microsoft-subsidized ChatGPT generative AI product, AI fever has infected Wall Street; Bank of America strategists dubbed AI the “new electricity” in a March note, projecting it to create massive gains for stocks. A slew of technology companies have revealed their own AI services, but benefitting the most are mega-cap tech stocks like Nvidia, Meta, Alphabet and Amazon, four of the 20 best-performing stocks on the S&P year-to-date.

‘AI Is The New Electricity’: Bank Of America Picks 20 Stocks To Cash In On ChatGPT Hype (Forbes)

Read the full article here

News Room May 17, 2023 May 17, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Texas flash flood claims at least 24 lives

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Opec+ plans to boost oil output in bid to win back market share

Stay informed with free updatesSimply sign up to the Oil & Gas…

Dealmakers hit pause on M&A as caution rules the boardroom

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

All hail the equity vigilantes

Stay informed with free updatesSimply sign up to the Capital markets myFT…

Apple races to box office glory with Brad Pitt’s F1 blockbuster

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Crypto

'Fundamental Shift' in Traditional Bitcoin Market Cycle May Be on the Horizon

By News Room
Crypto

FTX/Alameda Unstakes Over $1B in Solana – Is a Major Price Shift Coming?

By News Room
Crypto

Man Utd launch Player Trading Cards digital collectibles and Fantasy United game | 31 July 2024

By News Room
Crypto

Solana Meme Coin Prices Surge – Sealana Raises Over 3 Million

By News Room
Crypto

Can New AI Meme Coin Oracle Meme Surge Like Pepe?

By News Room
Crypto

The Next 100X AI Crypto?

By News Room
Crypto

Argentinian Regulators Talk Bitcoin with El Salvador Authorities

By News Room
Crypto

BitGo’s $100M Suit Against Galaxy Gets Green Light from Delaware Supreme Court

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?