The present AI frenzy is often compared with the Dotcom Bubble of the 1990s, a parallel that some investors think was invoked, intentionally or not, by Federal Reserve Chair Jerome Powell on Tuesday. The inclusion of a company in the Dow Jones Industrial Average does not depend on defined criteria. Instead, an independent Wall Street Journal commission decides whether a share is to be included or excluded.
Here’s Where OpenAI, Oracle and SoftBank Are Building 5 New Data Centers
AI giant OpenAI, cloud software maker Oracle (ORCL), and Japanese tech firm SoftBank are expanding their partnership in Stargate, announcing plans to build five new AI data centers. Major stock indexes ended lower for a second straight day Wednesday following a three-session streak of record closing highs. The blue-chip Dow Jones Industrial Average finished down 0.4%, and the benchmark S&P 500 and tech-heavy Nasdaq closed 0.3% lower.
- Powell’s comment spoke to a lingering fear on Wall Street that the big tech stocks powering equity indexes to record highs are trading at unsustainable valuations.
- Reuters quoted a White House spokesperson as saying President Donald Trump supports the project, which is seen as key to boosting domestic lithium production.
- Alibaba didn’t immediately respond to Investopedia’s request for further comment.
The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies and hit its lowest level since early 2022 one week ago, rose 0.6% to 97.87. U.S.-listed shares of Chinese firm Alibaba (BABA) soared 8% after it raised its budget for AI infrastructure and models, while Marvell Technology (MRVL) ended up more than 7% to lead the Nasdaq. Intel (INTC) advanced more than 6% as Bloomberg reported that the chipmaker had discussed Apple (AAPL) buying a stake. The majority of borrowers who resumed repayments have been able to manage the hit to their budget. Of the 18.8 million borrowers currently in repayment, nearly 13 million are in good standing. About a quarter of student loan borrowers recently surveyed by think tank Data for Progress said they expect to pay off their student debt by next year.
Demand for more memory capacity at artificial intelligence data centers and positive signals from Micron Technology’s quarterly results are fueling growing expectations for Sandisk’s stock. Gold futures, which set another record high early Wednesday, pulled back almost 1.5% to trade at $3,765 an ounce as of 4 p.m. The 10-year Treasury yield, which affects borrowing costs on a variety of consumer and commercial loans, ticked up to 4.15% from 4.11% at Tuesday’s close.
A major jobs report, key consumer data, and Fed commentary: Here’s everything on tap for markets this week
We’re talking about the sneaker and athleticwear company’s shares, which finished 2024 above $75 apiece and closed below $54 in April, have almost round-tripped, finishing Tuesday just under $71. Freeport-McMoRan (FCX) was the worst-performing stock in the S&P 500 Wednesday morning, with shares down more than 10%. Shares of Adobe (ADBE) fell about 3.5% in late-morning trading after Morgan Stanley analysts downgraded the stock to “equal-weight” from “overweight.”
Outlook Reports world
The AI rally is poised to broaden out beyond the biggest names in the market, Futurum Group says. Wu has said he sees companies globally spending around $4 trillion globally on AI over the next five years, and “Alibaba needs to keep up,” Bloomberg said. Alibaba didn’t immediately respond to Investopedia’s request for further comment. The administration has already invested in other companies it sees as critical to U.S. national security, notably Intel (INTC) and MP Materials (MP). Thacker Pass, expected to open in 2028, is expected to be the largest supplier of lithium in the Western Hemisphere. Reuters quoted a White House spokesperson as saying President Donald Trump supports the project, which is seen as key to boosting domestic lithium production.
The mineral is an important component of rechargeable batteries, and U.S. officials have expressed concern about China being the major supplier. Shares of General Motors (GM), which is partnering with Lithium Americas to build the Thacker Pass mine in Nevada, also gained. The https://chicken-road-apk.com/ chipmaker’s shares continued their surge, rising about 5.5% to place among the top gainers in the S&P 500 and Nasdaq.
Micron Levels to Watch After Memory Chip Maker Reports Strong Earnings
The spending plan marks the latest push by a tech firm to invest big in AI, the technology that has fueled U.S. stock markets to hit record highs. Nvidia said earlier this week it plans to invest up to $100 billion in ChatGPT owner OpenAI. Powell’s comment spoke to a lingering fear on Wall Street that the big tech stocks powering equity indexes to record highs are trading at unsustainable valuations. And some market watchers, including Ed Yardeni, president of Yardeni Research, heard in Powell’s comments echoes of a previous Fed chair’s ominous assessment of stock prices.
- “Equity prices are fairly highly valued,” said Powell when asked during an appearance in Rhode Island about the Fed’s risk tolerance.
- A day later, indexes were little changed until turning lower around midday, with the S&P 500 Materials sector the worst performer of the 11 industries tracked by the benchmark index, ending down 1.6%.
- The S&P 500 Technology Sector fell 0.7%, the third-worst performance among the 11 industries tracked by the benchmark index.
- Powell “triggered our contrary instincts with that last statement,” wrote Yardeni in a note on Tuesday, according to CNBC.
- Alibaba Group Holdings (BABA) CEO Eddie Wu reportedly said Wednesday that the Chinese company has raised its AI budget to more than the $53 billion three-year outlay it announced in February.
Realtime Prices for Dow Jones Stocks
Among the top gainers were Xcel Energy (XEL), EQT (EQT), and Phillips 66 (PSX), up more than 6%, 4%, and 3%, respectively. West Texas Intermediate futures, the U.S. crude oil benchmark, advanced 2.2% to roughly $64.80 per barrel. The shares included in it are weighted according to price; the index level represents the average of the shares included in it. Their mean price target, recently above $80, is only a 13% premium to Tuesday’s close, and more now say things have improved.
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Greenspan’s question was a nod to the Dotcom Bubble of the late 1990s, when speculative fervor sent tech stocks soaring despite slim or non-existent profits. The bubble grew for years after Greenspan’s comments, and ultimately popped in early 2000 after Greenspan’s Fed raised interest rates to prevent the economy from overheating. The highlight for markets this week is the September jobs report, which could reset investors’ expectations for Fed rate cuts through year-end. Costco Wholesale (COST) is slated to report fourth-quarter earnings after the closing bell Thursday. Costco shares may be in for a bout of volatility some analysts think could give investors a chance to snag a stock poised to deliver “sustainable” results. The company said about “800,000 metric tons of wet material entered the mine and traveled rapidly to multiple mine levels, including the service level of the mine where the missing team members were conducting development activities.”
There are no fixed times for reviewing the composition of the index, since changes are only made by the commission as and when they are needed. EA stock is surging on news that the video game company is set to be taken private in what will be the largest leveraged buyout ever. The Fed pivoting back to a hawkish stance is the biggest risk facing the market right now, HSBC said. Our flagship product ShabdKhoj – English Hindi Word Search and Translation is a free online Hindi to English and English to Hindi translation service.
Reuters said Lithium Americas was scheduled to take the first tranche earlier this month, but Trump officials moved to renegotiate the agreement over fears the company wouldn’t be able to repay the money because of low lithium prices. Lithium Americas (LAC) shares skyrocketed Wednesday after a report that the Trump administration is looking to take as much as a 10% stake in the lithium project developer. Student loan borrowers are cutting back spending in order to restart loan payments, according to new data. Most are successfully managing their loans, but more borrowers than usual are struggling. More data centers to power artificial intelligence are coming to the U.S. as part of the government’s half-trillion-dollar Stargate AI infrastructure plan announced in January. By that, we mean neither teamed up with a Kardashian nor reworked the brand’s legendary tagline—though that stuff is happening too.
China’s top tech firm is spending even more than it originally planned on AI, turning up the heat on U.S. chip giants like Nvidia (NVDA) in the race to dominate the technology. That suggests that the median borrower, who has a balance of about $25,000 in student loans, has cut back their yearly spending by $1,590 to resume their payments. During the COVID-19 pandemic, the Department of Education paused all student loan payments.
Lithium Americas (LAC) shares nearly doubled on a report the Trump administration is looking to take a stake in the company, which is partnering with General Motors (GM) on a Nevada lithium mine. A day later, indexes were little changed until turning lower around midday, with the S&P 500 Materials sector the worst performer of the 11 industries tracked by the benchmark index, ending down 1.6%. Technology shares also underperformed the market overall, with the sector 0.5% lower. The Department of Energy approved a $2.26 billion loan to develop Thacker Pass at the end of the Biden administration.
Alibaba Group Holdings (BABA) CEO Eddie Wu reportedly said Wednesday that the Chinese company has raised its AI budget to more than the $53 billion three-year outlay it announced in February. Saying they were “haunted by what we don’t know,” the analysts wrote in a note to clients that “decelerating Digital Media ARR has driven outsized concern on ADBE’s ability to prove GenAI net expansive to its total opportunity.” The S&P 500 Technology Sector fell 0.7%, the third-worst performance among the 11 industries tracked by the benchmark index. Shares of uniQure (QURE) skyrocketed 235% Wednesday after the gene therapy firm released positive trial results for its experimental treatment for Huntington’s disease. The force index indicator is a technical tool used by traders to measure the power behind movements in the price action. This index tracks the performance of the 40 largest companies listed on the Johannesburg Stock Exchange in South Africa.
Intel shares have jumped about 55% in 2025, aided in recent weeks by the U.S. government’s taking a 10% stake in the company, a $5 billion investment by Nvidia, and a forecast calling for a cut in expenses. Powell “triggered our contrary instincts with that last statement,” wrote Yardeni in a note on Tuesday, according to CNBC. “Financial crises tend to be Black Swans, i.e., events that occur unexpectedly, especially when irrational exuberance is widespread and intensifying,” he added. “Equity prices are fairly highly valued,” said Powell when asked during an appearance in Rhode Island about the Fed’s risk tolerance. Nonetheless, “it’s not a time of elevated financial stability risk,” Powell said.
They’re still more than a third below where they ended 2023, recalling the steep drop that led to the replacement of Nike’s (NKE) CEO with Elliott Hill, the current chief, and well off 2021’s record highs. But there’s optimism behind the shares that has some analysts looking toward triple-digit prices for the stock for the first time since March 2024. The company said late Tuesday it expects to generate fiscal first-quarter revenue of $12.20 billion to $12.80 billion. The midpoint of that range comes in well ahead of the $11.94 billion expected by analysts, with the guidance driven by booming demand for the company’s high-bandwidth memory chips and favorable pricing dynamics. Micron (MU) shares slipped 2% Wednesday morning even though the memory chip maker posted better-than-expected quarterly results and issued a rosy forecast amid surging AI-related demand.