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Market Wrap | Wall Street Climbs as Biotech Soars and Morgan Stanley Hits Record Amid Mixed Earnings and AI Tensions
AInvestWednesday, Oct 16, 2024 6:30 pm ET
1min read
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On October 16th, US stock indexes closed higher, with the S&P 500 gaining 0.47% to 5,842.47 points, the Dow Jones up 0.79% to 43,077.70 points, and Nasdaq rising 0.28% to 18,367.08 points.

Korro Bio surged 93.66%, Wave Life Sciences rose 74.07%, and ProQR Therapeutics jumped 122.10%, contrasting with declines in Silvaco by 32.64%, Bright Minds down 25.18%, and Tevogen Bio Holdings slipping 24.09%.

Morgan Stanley hit a record high, climbing over 7%, driven by its third-quarter profit surging 32% to $3.2 billion, exceeding expectations in stock trading, fixed income, and investment banking revenues. The optimism in the equity markets prompted Goldman Sachs to highlight the potential for higher returns from US stocks compared to bonds, amid a conducive late-cycle economic environment.

Chinese concept stocks stabilized after recent pullbacks, with the Nasdaq Golden Dragon China Index rising over 1%. Leading this were firms like 21Vianet, KE Holdings, and Zai Lab, all with gains exceeding 3%. The wider Chinese real estate index also rallied close to 8%, benefiting broadly from expectations of new policies aiming to stabilize the market.

Markets are adjusting to recent earnings reports that have been mixed. While major banks have shown robust performance, other sectors felt the pressure from weaker forecasts, including health care and chip manufacturers. Despite some setbacks, the persistent demand for AI technology continues to bolster market optimism.

The tension in the geopolitics surrounding AI has raised caution, with US authorities considering export license restrictions for AI chips to certain countries. This has heightened challenges within the semiconductor sector, exacerbated by ASML's sharp decline due to its earnings warning.

With the US presidential election approaching, market dynamics are expected to become more volatile. Analysts suggest that Trump's potential re-election could benefit small-cap stocks. However, investor sentiment remains tentative due to tight polling numbers between the leading candidates.

NVIDIA has seen strong market interest in its Blackwell series GPUs, with its partnership with Google Cloud to implement these processors. Meanwhile, Tesla continues advancing its Semi electric truck, aiming for a 2025 full-scale production despite initial setbacks. Additionally, partnerships in the tech industry, including the establishment of the x86 ecosystem advisory group by Intel and AMD, underscore ongoing efforts to sustain their computing platforms' relevance.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.