empty
07.06.2023 02:31 PM
AI hype shakes up market

The NASDAQ's remarkable recent performance, with technology companies leading an aggressive bull run, has drawn attention to the buzz surrounding artificial intelligence (AI). Citadel CEO Ken Griffin suggests caution, warning against overhyping expectations for generative AI at this nascent stage of tech sector growth. During a recent event Griffin stressed that over-expectations could potentially backfire and harm the sector.

This image is no longer relevant

The billionaire investor has acknowledged the transformative potential of advanced technologies. However, he has emphasized that these technologies are still early in their development. He has also dismissed the idea that AI is set to obliterate skilled professional jobs as unrealistic.

As previously noted, the intense media focus on AI has fueled the NASDAQ's bull run, particularly as demand for tech stocks soared in the aftermath of a financial shakeup that saw several American lenders collapse in March.

Market indicators have underscored this shift, with tech giant Nvidia's market capitalization topping $1 trillion. The AI-based chat-bot, ChatGPT, capable of delivering human-like responses to user queries, has made significant waves in the sector, quickly becoming a global phenomenon and one of the fastest-growing software platforms in history.

Pre-market movers

Shares of Tesla saw a 3% pre-market bump following a company website update revealing that the new Model 3 and Model Y vehicles will be eligible for a $7,500 US tax break under the Inflation Reduction Act.

Streaming behemoth Netflix has seen a 3.1% climb during the pre-market after JPMorgan revised its stock price target upward. JPMorgan cited the company's proactive steps to curb password sharing on its platform, a move it says could lead to significant revenue growth.

In the gaming sector, GameStop's shares added 2.4% in pre-market trading as investors await the company's quarterly results, due today. Market analysts anticipate adjusted quarterly losses of 15 cents per share.

Meanwhile, shares of Brazil's oil powerhouse Petrobas jumped by 2% in pre-market trading. The rise follows Morgan Stanley's decision to upgrade its rating of the company's stock to 'buy' from 'hold'. Morgan Stanley predicts Petrobas could offer investors larger dividends this year compared to 2022.

Regarding the technical situation of the S&P 500, demand for the index has somewhat returned. Bulls still have a chance to start an upward trend, but they need to cling on to $4,290, from where a jump to $4320 can occur. An equally important task for the bulls will be to maintain control over $4,370, which will strengthen the bull market. In case of a downward movement against the backdrop of reduced risk appetite and hawkish comments from Fed representatives, buyers will have to act around $4,255 and $4,230. A breakout below these levels will quickly push the trading instrument back to $4,175 and open the path to $4,143.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Stock Market Outlook for March 21st: S&P 500 and NASDAQ Under Pressure Again

At the close of yesterday's regular trading session, U.S. stock indices ended in the red. The S&P 500 fell by 0.22%, while the Nasdaq 100 lost 0.33%.Asian stock indices also

Jakub Novak 10:46 2025-03-21 UTC+2

US market in consolidation phase. Trump seeks Senate backing for Iran strikes

S&P 500 Overview for March 21 The US market entered a phase of consolidation on Thursday as it struggled to define its next direction. Major US indices on Thursday

Jozef Kovach 10:10 2025-03-21 UTC+2

Federal Reserve throws lifebuoy to stock market

The wave structure on the 24-hour chart for #SPX is fairly clear. The first and most important point is the large-scale five-wave structure, which is so wide that it barely

Chin Zhao 09:21 2025-03-21 UTC+2

US market rallies as Fed holds rates steady

S&P500 Overview for March 20 The US market rallied as the Fed left interest rates unchanged. Key US indices on Wednesday: Dow: +0.9%, NASDAQ: +1.4%, S&P 500: +1.1% (S&P

Jozef Kovach 11:19 2025-03-20 UTC+2

US stock market on March 20: S&P 500 and Nasdaq regain their footing

US stock indices ended the day with solid gains. The S&P 500 climbed by 1.1% and the Nasdaq 100 closed 1.41% up. At the moment, S&P 500 futures

Jakub Novak 09:30 2025-03-20 UTC+2

S&P 500 Forecast for March 20, 2025

The S&P 500 experienced a positive trading session yesterday and has started today on a strong note. However, the entire rally since March 14 still appears to be a correction

Laurie Bailey 03:37 2025-03-20 UTC+2

US market overview: pullback after growth. Focus on Fed. No rate change expected

S&P 500 Market overview on March 19 US Market: Pullback. Consolidation. Focus on Fed. Major US indices on Tuesday: Dow -0.6%, NASDAQ -1.7%, S&P 500 -1.1%, S&P 500 5,614, range

Jozef Kovach 10:57 2025-03-19 UTC+2

Stock market overview on March 18: S&P 500 and Nasdaq rise for second day

US stock indices closed with solid gains yesterday. The S&P 500 rose by 0.64%, while the Nasdaq 100 added 0.31%. Asian stocks are also up for the third day, driven

Jakub Novak 12:11 2025-03-18 UTC+2

US stock market: two days of gains from support levels

S&P500 US stock market: two days of gains from support levels Snapshot of major US indices on Monday: Dow Jones: +0.9% NASDAQ: +0.3% S&P 500: +0.6% (closed at 5,675; range

Jozef Kovach 11:18 2025-03-18 UTC+2

Stock market analysis on March 17: S&P 500 and Nasdaq remain under pressure

Futures on US stock indices declined after Treasury Secretary Scott Bessent called the recent market drop "favorable," reinforcing expectations that the Trump administration is unlikely to intervene to stop

Jakub Novak 13:49 2025-03-17 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.