Market Wrap | Tech Stocks Shine Amid Mixed Market as TSMC Leads the Charge
1min read On October 17, U.S. stock markets showed mixed results as the S&P 500 dipped slightly by 0.02%, closing at 5,841.47, while the Dow Jones rose 0.37% to 43,239.05, and Nasdaq edged up 0.04% to 18,373.61.
Economic data released today suggested resilience in the U.S. economy, with September retail sales surpassing expectations. Retail sales rose by 0.4%, exceeding the anticipated 0.3% growth. Initial jobless claims also came in better than expected, at 241,000 versus the forecast of 260,000.
Chip stocks led the charge, with strong performances following favorable economic indicators. TSMC soared over 10% to a record high, reporting Q3 profits that outstripped expectations, with net income up by 54%. Nvidia and Arm also saw gains, boosting investor confidence in the tech sector.
On the corporate front, speculation of a potential acquisition of Expedia by Uber propelled Expedia shares up by over 4%, although Uber dropped by 2%. Meanwhile, Lucid Motors fell 14% following an announcement of issuing new common stock.
Gold prices reached new highs amidst growing investor interest, despite broader market volatility. The spot price climbed to $2,685 per ounce after central bank gestures favoring increased gold reserves.
While the S&P 500 continues to reach new heights, leading strategies advocate cautious optimism. There remain voices of caution, notably from Berkshire Hathaway’s significant stock sell-off, hinting at concerns over high valuations.
In macroeconomic developments, the ECB lowered interest rates by 25 basis points for the second consecutive time, providing a lift to European stocks, which rose in response. This monetary easing aims to navigate economic challenges, echoing broader global themes of adaptability and resilience.