Wall Street rallied strongly on Thursday, driven by renewed optimism around artificial intelligence (AI), led by a surge in Microsoft shares. This came despite a spike in bond yields following Federal Reserve Chairman Kevin Warsh’s comments on inflation.
Market Moves
The Nasdaq saw a 2.8% increase, while the S&P 500 rose by 1.7%. The tech sector was particularly strong, with a 5% gain. Microsoft’s shares jumped by 15.5%, and other tech companies like Sandisk and Micron Technology also saw significant gains.
In the foreign exchange market, the yen had one of its best days in years, suspected to be due to intervention from Japanese authorities. The dollar/yen exchange rate plunged by 2.5%, its biggest fall since April 30.
Outlook
The bond market’s reaction to Warsh’s comments has raised questions about the Fed’s commitment to bringing inflation down. The lack of clarity from the central bank has led to doubt and skepticism in the market, which may lead to more turbulence in the coming weeks and months.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
