AI Trade and Rate-Cut Hope Extends Monday's Gains
- Barry Adams
- U.S.A. New York City
-
Alphabet jumped 4%, extending this year to 70%, after The Information reported that Meta Platforms is considering purchasing its AI chips.
Stocks on Wall Street attempted to extend the previous session's large gains, and investors increased exposure to high-flying artificial intelligence stocks.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% following a day when they soared 1.6% and 2.7%, respectively.
Stocks soared on Monday after three Fed policymakers suggested a rate cut is still likely at the end of 2025's last policy meeting on December 10, renewing hopes of a possible third rate cut this year.
AI-linked stocks soared amid optimism that leading tech companies will continue to invest in technology infrastructure at a breakneck pace.
Alphabet jumped 4% and extended this year to 70% after Meta Platforms is considering to purchase its AI chips. The news was first reported by The Information.
U.S. Stock Movers
SanDisk Corp. jumped 1.9% to $231.16 after the S&P Dow Jones Indices said it will include the electronic storage company in the S&P 500 index, replacing Interpublic Group.
Zoom Communication Inc. advanced 4% to $82.25 after the video application company reported stronger-than-expected fiscal third-quarter results.
Revenue in the quarter rose 4.4% to $1.23 billion from $1.18 billion, net income soared to $612.8 million from $207.1 million, and diluted earnings per share advanced to $2.01 from 66 cents a year ago.
Zoom estimated fiscal fourth quarter revenue to range between $1.230 billion and $1.235 billion, and adjusted diluted earnings per share between $1.48 and $1.49.
The company also expanded its stock repurchase program by $1.0 billion, incremental to the remaining $314 million remaining authorization at the end of October.
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| Zoom Video Communications Inc. | ZM | -4% | 19% | -2% |
| Interpublic Group of Companies Inc The | IPG | -4% | -10% | -1% |