US stocks mostly gained today, led by technology companies, recovering from Friday’s slump driven by concerns over the negative impact of higher interest rates on artificial intelligence (AI) infrastructure investments. The Dow Jones Industrial Average, which tracks 30 prominent US corporations, shed 0.07 percent today to close at 51,966.03 points. However, the broader S&P 500 rose 0.41 percent to 7,690.73 points, while the tech-heavy Nasdaq Composite climbed 1.11 percent to 26,430.89 points.
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Dollar Strengthens as French Instability Weighs on the Single Currency
Shares of Nvidia, which dominates the global market for AI chips, gained about 1.4 percent today. Chipmaker Intel advanced roughly 2.4 percent following an upgrade by JPMorgan. However, shares of internet giant Meta, scheduled to report quarterly results on Wednesday, slipped by nearly 0.6 percent.
In the foreign exchange market, the euro weakened against the US dollar, pressured by concerns over political instability and deteriorating fiscal prospects in France. Shortly after 10:00 PM CEST, the single European currency was down about a quarter of a percent, trading close to 1.1210 USD.
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Markets Eye Fed Meeting as Rate Pause Looms Ahead of December Hike
Over the weekend, France was swept by widespread protests against the rising cost of living, following earlier student demonstrations. Numerous protests in Paris, Marseille, Lyon, Bordeaux, and other major cities escalated into violence and looting. According to analysts, the unrest bolsters the prospects of far-right politician Marine Le Pen winning the French presidential election scheduled for next year. That could raise questions about France’s continued membership in the European Union, Reuters reported.
Investors‘ attention also remains focused on interest rate developments. The US Federal Reserve raised its benchmark interest rate by a quarter of a percentage point last month to a target range of 3.75 to 4.00 percent. Moreover, Fed officials signaled that they anticipate further rate increases in the coming months. The Fed will decide on interest rate policy again next week. Financial markets expect the central bank to hold rates steady this time, but are pricing in a hike at its subsequent meeting in December.
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Source: Reuters
