Tech giants like Google and Microsoft are expected to see a surge in their cloud businesses as more companies invest in technology. Analysts are also eager to hear about advancements in artificial intelligence (AI) and how these companies plan to capitalize on it.
Investors have shown great enthusiasm for AI technology, driving the Nasdaq up by 34% this year. They believe AI has the potential to be the next transformative trend in the sector.
This boost in tech stocks is also attributed to the expectations that the Federal Reserve is nearing the end of its interest rate increases. However, it is predicted that the Fed will announce another quarter percentage point hike at the end of their two-day meeting tomorrow.
Investors will closely monitor Fed Chair Jerome Powell’s press conference for any hints regarding the Fed’s next rate move later this year. Futures traders have mixed opinions on whether the rate hikes will conclude after this month or if another quarter point increase will occur in one of the fall meetings.
Today, consumer confidence numbers will be released and will be followed by reports on the second-quarter gross domestic product, initial jobless claims, and the personal consumption expenditures index, which serves as a key inflation gauge.
In other stock developments, General Electric Company (NYSE:GE) experienced a 6% increase after raising its adjusted profit outlook. The company anticipates strong demand for engine parts and other services from airlines.
Verizon Communications Inc (NYSE:VZ) saw a 0.4% increase in its shares after announcing higher than expected growth in wireless subscribers. More individuals are upgrading their devices, leading to this positive outcome.
Furthermore, 3M Company (NYSE:MMM) observed a 4.5% rise in shares after revising its annual adjusted profit forecast.
Overall, tech giants’ cloud businesses are projected to thrive while AI strategies continue to be a topic of interest. Investors anticipate advancements in digital advertising and hope to gain insights into AI spending and strategies. Meanwhile, they remain attuned to the Federal Reserve’s decisions and economic indicators that will shape the direction of the market.
