Slogans related to artificial intelligence (AI) are displayed on a screen in the Intel Pavilion during the 54th World Economic Forum Annual Meeting in Davos, Switzerland, January 16, 2024.
Dennis Bariboos | Reuters
Stock prices rise every week
The S&P 500 and Nasdaq Composite ended slightly lower on Friday, ending a six-day winning streak. The blue-chip Dow Jones Industrial Average bucked this trend, rising 0.16%. Despite mixed trading, all three indexes ended the week higher on strong economic data. The Fed’s preferred inflation measure, the Core Personal Consumption Expenditures Price Index, rose 0.2% in December, boosting investor confidence a day after fourth-quarter GDP beat expectations.
Rapid increase in layoffs of engineers
Silicon Valley tech companies are cutting jobs rapidly. Some 23,670 workers have been laid off by 85 technology companies since early January, according to the website Layoffs.fyi. Some parts of the business are laying off staff to invest more in developing AI products.
China increases pressure on Taiwan
The Chinese government has dispatched dozens of military planes and warships to autonomous Taiwan. The move came on the same day that U.S. National Security Adviser Jake Sullivan met with Chinese Foreign Minister Wang Yi, as both sides seek to stabilize U.S.-China relations.
US crude oil had its best week yet
U.S. oil prices ended their best week in more than four months on Friday, as solid economic data from the world’s two largest economies raised hopes of even stronger oil demand this year. US crude oil prices rose 6.27%, marking the best week since September 1st, while the global crude oil index ended the week up 6.35%. WTI and Brent have each risen more than 8% this year.
[PRO] Is Tesla still attractive?
Kingsley Jones, founder and chief information officer of boutique advisory firm Jevons Global, is not bullish on Tesla stock given increased competition from Chinese electric car makers. Jones added that Tesla will likely face margin pressure in the U.S. unless it lowers both prices and costs, and offered three alternatives.
This week will be a big week for Big Tech on Wall Street.
Most of the so-called “Magnificent 7” – Alphabet, Amazon, Apple, Meta and Microsoft – are expected to report results in the coming days.
With all the hype around generative artificial intelligence, it’s no wonder investors are increasingly interested in Big Tech companies’ earnings.
Microsoft, including competitors Meta and Alphabet’s Google, are ramping up their efforts in AI technology to integrate their applications into their products. Silicon Valley has already laid off more than 23,000 workers so far in January to win the AI race, as companies bet big on AI and invest more in developing the technology. There is.
Investors will be interested to see whether Big Tech’s AI investments and strategic layoffs pay off on the bottom line.
The S&P 500 index is trading at record levels, and the Nasdaq index is hitting a two-year high for big tech stocks. Alphabet stock reached new highs on Thursday, as did Microsoft, which has a market capitalization of more than $3 trillion.
Aside from the attention-grabbing financial results, the Federal Reserve’s policy meeting will also be held this week. Investors don’t expect interest rates to change, but they will look for clues about when officials will cut rates.
—CNBC’s Ashley Capoot and Jonathan Vanian contributed to this report.