US stocks gained at the start of the week. Shares of Broadcom and other chipmakers performed well. Investors bought shares of companies tied to the artificial intelligence (AI) sector ahead of the expected second-quarter financial results reporting season, Reuters reported.
You might like: Trading vs. Investing
Tech and Chip Rally Propels Major US Indices Higher
The broader S&P 500 index added 0.72 percent to 7,537.43 points. The Dow Jones Industrial Average, which includes thirty leading industrial companies, increased by 0.29 percent to 53,055.91 points. The tech-heavy Nasdaq Composite index rose by 1.12 percent to 26,121.16 points.
Shares of Broadcom rose 3.73 percent after the chipmaker reached an agreement with tech company Apple to extend a contract for the development and supply of a range of custom chips until 2031. The S&P 500 Information Technology sector index rose by 1.34 percent. The Philadelphia SE Semiconductor index, which focuses on semiconductor manufacturers, added 2.17 percent after recording losses in the previous two sessions.
Read more: eToro – Review
Dollar Strengthens as Yen Teeters Near 40-Year Lows Amid Fed Speculation
The US dollar strengthened slightly on foreign exchange markets today. This happened after weak labor market data from last week reduced the likelihood of an immediate interest rate hike by the US central bank (Fed). The Japanese yen is struggling and moving near its lowest levels in the last four decades, which has increased the risk of official intervention, Reuters reported.
Around 10:00 PM, the dollar was up 0.44 percent against the yen at 162.039 JPY, and the euro strengthened against the yen by 0.46 percent to 185.404 JPY. Last week, the yen reached as low as 162.84 JPY against the dollar, its lowest level since 1986. According to the CME exchange company’s FedWatch tool, markets currently assign an approximately 25 percent probability to the scenario where the Fed proceeds with a 0.25 percentage point interest rate hike at its next meeting in just over a month. Markets give a roughly 75 percent probability to the scenario where the Fed leaves rates unchanged.
Don’t miss out on: Wonderinterest Broker Review
Source: Reuters
