U.S. Stocks Hit New Highs as AI Drives Japanese Tech Surge
The U.S. stock market continued its upward trajectory, with the S&P 500 and Dow Jones today reaching new all-time highs on Friday. Meanwhile, Japanese tech companies surged on the Tokyo stock exchange, driven by artificial intelligence (AI) investments and partnerships. However, the U.S. government shutdown delayed the release of crucial jobs data, leaving investors in limbo.
The S&P 500 and Dow Jones today closed the week with gains, marking the seventh and fifth consecutive winning weeks respectively. Most stocks rose, with the S&P 500 gaining less than 0.1% and the Dow climbing 238 points, or 0.5%. This positive trend comes despite past U.S. government shutdowns having minimal impact on the economy or stock market.
On the other hand, the Nasdaq composite slipped 0.3% from its record high, with AI stocks experiencing mixed performance. Nvidia, a leading AI stock, finished with a dip of 0.7% after losing an early gain. Meanwhile, Japanese tech companies like Hitachi, Renesas, Sony, and Advantest performed positively on the Tokyo stock exchange, with Hitachi jumping over 9% and Renesas gaining a similar amount. This surge was driven by AI investments and strategic partnerships with OpenAI, including Hitachi's new collaboration on AI and energy projects. However, concerns about a potential bubble in AI stocks persist.
Exxon Mobil and Diamondback Energy climbed as the price of crude oil recovered some losses. The U.S. government shutdown delayed the release of the monthly jobs update, which is typically closely watched by Wall Street for economic indicators.
The U.S. stock market continues to be driven by AI, with Japanese tech companies surging on the back of AI investments and partnerships. Despite the U.S. government shutdown delaying crucial jobs data, the market remains resilient, with the S&P 500 and Dow Jones today reaching new all-time highs. However, investors remain cautious about potential bubbles in AI stocks.
