AI Demand Powers Stocks Higher – US Market Wrap

At the beginning of a week that will see a variety of central bank decisions from the US to England and Japan, IT giants led increases in stocks.

Following a recent decline, the market recovered, with megacaps leading the way. As it was revealed that Apple is in talks to integrate Google’s Gemini artificial intelligence engine inside the iPhone, Alphabet surged. Nvidia, the darling of AI, also gained attention; many saw its yearly conference as crucial to maintaining the stock’s explosive rise.

With central banks dictating policies for about half of the world economy, Wall Street is likewise bracing itself for further details on the Federal Reserve’s intention to loosen. This week brings with it the largest collection of global 2024 rulings to far, including rulings on borrowing costs for six of the ten most traded currencies.

The S&P 500 reversed a three-day fall, the Nasdaq 100 gained 1%, and a barometer of the “Magnificent Seven” tech megacaps increased twice as much. US two-year rates remained near 2024 highs as hopes for Fed cutbacks eroded. The yen fluctuated following news that the Bank of Japan is planning to end its strategy of directing government bond yields, known as yield curve control.

Ahead of the Fed decision, Japan will face a watershed moment in its history: the country is anticipated to abolish its negative interest rate regime, the world’s last. Traders wagering on the result of the BoJ’s decision have increased their stakes in yen futures to the highest level since 2007.