US Markets Soar: Nasdaq Outperforms as Apple Leads Tech and Chip Stocks Surge
US Markets LIVE, 18 Jan 2024: The US stock market indices opened higher on Thursday, due to a surge in chip and heavyweight stocks, while investors are looking for more clues on when the Fed will start cutting the interest rates and the quarterly earnings.
The Dow Jones Industrial Average (DJIA) opened marginally higher by 34.14 points at 37300.81, while the S&P 500 index made a positive opening of 20.89 points and opened at 4760.10. The Nasdaq Composite index also opened higher by 138.9 points at 14994.52.
US Markets Live Today
US Markets at 11.40 a.m. EDT, Dow Jones recovered intraday losses and is trading slightly higher by 23.84 points or 0.06 percent at the 37290.51 level while the S&P 500 is trading on a positive note, up by 24.04 points or 0.51 percent at 4763.25 levels. The tech-heavy Nasdaq Composite extended its early gains but is trading higher by 180.19 points or 1.21 percent at 15035.81 levels.
US Market News
The US stock market indexes are trading higher on Thursday, Dow Jones slipped after opening higher and then recovered, while the S&P 500 and Nasdaq index are trading higher due to a surge in technology and chip-related stocks. Apple leads the gains in the technology space as Bank of America upgraded the stock to buy, setting the target of more than 20% upside over the next 12 months.
On the economic front, US markets fell on Wednesday after stronger-than-expected retail sales data released for December. Thursday, the data showed the number of Americans filing for new jobless claims last week hit the lowest level since late 2022, indicating strong job growth in January.
However, the Philadelphia Federal Reserve manufacturing index remains in contraction in January. In addition to this single-family homebuilding fell sharply in December. Investors are now waiting for the speech from Atlanta Fed President Raphael Bostic later in the day for more cues about the interest rate cut trajectory
Currently, traders are pricing in a roughly 57% probability of ease in interest rate cut in March, according to the CME FedWatch Tool. The 10-year Treasury yield is trading with no change from the previous close of 4.109%
US Stocks in News
Share of Google parent Alphabet is gaining above 1% after the news of job cuts at Google. According to the sources, the scale of job cuts won’t be as extensive as last year but it’s needed to simplify operations and increase efficiency in some areas.
Discover Financial Services stock fell more than 7% as the credit card lender missed the estimates, and reported a sharp decline in fourth-quarter net income due in part to higher compliance-related expenses.
The share of Spirit Airlines extended losses to a third consecutive session, down more than 12% on Thursday due to ongoing concerns about the company’s future after a U.S. judge blocked its $3.8 billion merger with JetBlue Airways.
Humana shares fell more than 11% after the health insurance company warned that medical costs were running higher than expected and said that the pressure might impact its 2024 results as well.
Crude Oil Prices
Crude oil prices are trading higher due to the combination of weather-related disruptions in U.S. oil production and heightened geopolitical tensions in the Middle East.
The US WTI crude trades higher by 1.32% at $73.42 per barrel while London-based Brent crude oil is up by 0.92% at $78.62 per barrel.
Also, read – US Markets: Dow Jones, S&P 500, and Nasdaq Decline Amid Surge in Treasury Yields
US Markets at Close
US markets ended higher on Thursday due to a rally in tech stocks led by Apple and chip-related stocks. Apple gained 3.26% at the close, as Bank of America upgraded the stock to buy from neutral, setting the target of $225 over the next 12 months. Google parent Alphabet, AMD, and Nvidia gained more than 1% each, while Taiwan Semiconductor Manufacturing jumped more than 9% after beating quarterly results above expectations and solid guidance for this year.
The Dow Jones Industrial Average (DJIA) closed higher by 201.94 points or 0.54% and ended at 37468.61, while the S&P 500 index was up by 41.73 points or 0.88% and settled at 4780.94. The tech-heavy Nasdaq composite index jumped 200.3 points or 1.35% and finished at 15055.65.
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