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S&P 500 Nears Record Amid AI Stock Surge
10 Feb
Summary
- S&P 500 approaches all-time highs following a significant rally.
- Tech stocks, especially chipmakers and software, show strong recovery.
- Alphabet plans a $20 billion bond offering to fund AI initiatives.
The S&P 500 is on the cusp of reaching its all-time highs, buoyed by a significant market rally that has added $1 trillion to its value. Technology companies, which recently experienced a sharp downturn, are now experiencing a notable recovery. An index tracking chipmakers climbed 1.4%, and an ETF focused on software companies extended its gains to nearly 7% over two consecutive trading days.
Oracle Corp. saw a substantial 9.6% increase in its stock price. In a move to finance its artificial intelligence development, Alphabet Inc. plans to issue $20 billion in US dollar bonds, exceeding initial expectations. The company is also exploring its first bond offerings in Switzerland and the United Kingdom, the latter potentially including a rare 100-year bond sale.
Traders are closely watching upcoming economic indicators this week. The crucial employment report, due on Wednesday, is projected to show payrolls increased by 69,000 in January, with the unemployment rate expected to remain steady at 4.4%. These figures, along with historical revisions, will be vital in shaping the Federal Reserve's outlook. Additionally, inflation data will be released, providing further insight into economic conditions.
