In Palo Alto, California, Mark Zuckerberg, CEO of Meta Platforms, has revealed that the company is investing billions of dollars in Nvidia’s semiconductors to support its artificial intelligence (AI) ambitions. Although Zuckerberg did not provide specifics on the number of chips Meta has already purchased, he did mention that their AI infrastructure would incorporate 350,000 H100 graphics cards from Nvidia by the end of the year. Following this announcement, shares of both Nvidia and Meta experienced a more than 1% increase in premarket trading.
Meanwhile, Morgan Stanley predicts that the Bank of Japan (BOJ) will not abandon its negative interest rate policy at its upcoming policy meeting next week. The chief economist at Morgan Stanley in Japan, Takeshi Yamaguchi, attributes this expectation to the recent earthquake. Yamaguchi further explains that strong wage negotiations could be a determining factor in the BOJ’s decision to end its negative interest rate policy. Japan’s headline inflation rate for December fell to 2.6%, its lowest level since June 2022, prompting the BOJ to closely monitor the “core-core” inflation rate, excluding prices of fresh food and energy.
Asia’s chipmakers experienced a surge in stock prices after Taiwan Semiconductor Manufacturing Company (TSMC) released a positive annual forecast, driven by the demand for AI-related technologies. TSMC itself saw a 4.42% increase in its shares, while Samsung Electronics and SK Hynix, South Korea’s memory chipmakers, reported gains of 3.21% and 2.42%, respectively. Analysts believe that TSMC’s position in the market makes it well-positioned to benefit from the growing demand for low-power, high-performing chips that can facilitate AI functionalities.
In Japan, the country’s headline inflation rate dropped to 2.6% in December, marking a decline from November’s 2.8%. The core inflation rate, excluding fresh food prices, also fell to 2.3%, aligning with economists’ expectations. Additionally, the “core-core” inflation rate, excluding prices of fresh food and energy, saw a slight decrease from 3.8% in November to 3.7%.
Congress has passed a stopgap bill to prevent a partial government shutdown, securing funding for the federal government until March 1 and March 8. This marks the third stopgap bill passed since September, as lawmakers continue to work on a full-year government funding bill.
In terms of sector performance, only the information technology and communication services sectors are expected to end the week with gains. Technology stocks have been the best performers, with a 1.92% increase, while communication services stocks are set to add 0.31%. Conversely, utilities stocks have experienced a decline of 3.58%, with energy and real estate also showing decreases of 3.43% and 3.07%, respectively.
Finally, during extended trading hours, several stocks experienced notable movements. iRobot, the manufacturer of Roomba, saw a significant decline of more than 30% after reports surfaced suggesting that the European Union plans to block Amazon’s acquisition of the company. On the other hand, Super Micro Computer witnessed a 6% increase following the announcement of higher-than-expected preliminary second-quarter adjusted earnings. Additionally, Wendy’s Company, the fast-food restaurant, saw a 1% jump in after-hours trading after appointing a new CEO.
Looking ahead, stock futures opened with minimal changes on Thursday night, as the Dow futures inched higher by 10 points, or 0.03%. The S&P 500 showed a slight decrease of 0.03%, while the Nasdaq 100 futures added 0.01%.
These developments highlight the ongoing shifts and trends within the technology sector, the impact of global events on financial policies, and the performance of various industries in the current market climate.