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Tech Stocks Wobble: AI Resurgence Faces Year-End Test
22 Dec
Summary
- Stock futures showed modest gains ahead of a shortened holiday week.
- AI stocks like Oracle and Nvidia saw a resurgence last week.
- The NYSE will have early closure on Wednesday and be closed Thursday.
U.S. stock futures experienced a modest increase on Sunday night, signaling a cautious start to a shortened trading week. Traders are closely watching whether technology shares can sustain their performance as the year draws to a close. This comes after a mixed performance last week, where the S&P 500 and Nasdaq Composite eked out gains, while the Dow Jones Industrial Average saw a decline, breaking a three-week winning streak.
Artificial intelligence stocks demonstrated a notable comeback last week, recovering from recent underperformance. Significant gains were observed in shares of Oracle, driven by news of TikTok's U.S. operations potentially forming a joint venture involving the software giant. Nvidia also experienced a rebound. However, market sentiment remains watchful regarding AI stocks' ability to retain leadership as the year concludes, especially with investors considering shifts into less expensive market segments due to high tech valuations.
As the market anticipates a potentially subdued end to the year, questions linger about the possibility of a "Santa Claus rally." The New York Stock Exchange is scheduled for an early closing at 1 p.m. Eastern Time on Wednesday, December 24th, and will remain closed all day on Thursday, December 25th, for the Christmas holiday.
