Chips & AI Fuel US Market Rebound
Wall Street stocks on Tuesday (February 3) pushed closer to record highs after Palantir Technologies' solid business prospects boosted confidence in the AI theme. At the same time, "buy the dip" sentiment helped gold and silver recover from the extreme selling that rocked the market late last week.
In the technology sector, Palantir surged around 10%, while Advanced Micro Devices also rallied ahead of its highly anticipated earnings release—especially to see how far it has come in catching up with Nvidia on the AI map.
The AI euphoria also spread to Asia. The rush for memory chips for AI needs helped fuel a rally in South Korean stocks: the KOSPI surged nearly 7%, with Samsung Electronics recording its biggest daily gain since 2008.
Risk sentiment improved after several days of volatility, supported by US economic data deemed "okay" and the start of the earnings season. The dollar tended to stabilize after a brief rally, while bond yields edged up as the market digested the latest signals from central bank officials.
Tom Barkin of the Federal Reserve Bank of Richmond assessed that previous easing helped support the job market as inflation returned to target. Meanwhile, Stephen Miran stated that less intense price pressures leave room for further interest rate cuts this year. At the US stock market open, the S&P 500 rose 0.1%, the Nasdaq 100 gained 0.3%, and the Dow Jones Industrial Average remained relatively flat.
Source: Newsmaker.id
