A mix of economic data heavily influenced both Wall Street and the crypto market as the Q3 week reached its conclusion. However, the standout star of the tech world was Micron Technology (NASDAQ:MU), whose dazzling earnings significantly elevated expectations for the future of artificial intelligence (AI). Concurrently, Meta Platforms (NASDAQ: META) revealed a suite of tantalizing new AI features and products, adding further fuel to the already blazing fire of innovation.

Strong US Jobs Data Closes the Week

Kicking off the week, Wall Street experienced a slight uptick as major indexes opened on a positive note that Monday (September 23). The flash S&P Global Services Purchasing Managers’ Index for September boasted a reading of 55.4, surpassing the anticipated 55.2, thereby reinforcing optimistic sentiment surrounding the economy’s vigor. Despite this, Ladenburg Thalmann Asset Management CEO Phil Blancato issued a word of caution, highlighting the market’s eagerness for rate cuts from the US Federal Reserve that may not materialize – a potential recipe for volatility in the weeks to come.

On Tuesday (September 24), China unveiled a robust economic stimulus plan, injecting a healthy dose of enthusiasm into global stock markets. The issuance of special sovereign bonds amounting to approximately 2 trillion yuan bolstered equities worldwide, prompting the S&P/TSX Composite Index (INDEXTSI:OSPTX), S&P 500 (INDEXSP:.INX), and the Nasdaq Composite (INDEXNASDAQ:.IXIC) to all clinch new closing records. Furthermore, chip stocks such as Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) propelled the PHLX Semiconductor Sector (INDEXNASDAQ:SOX) skyward by an impressive 1.23 percent.

As the week progressed, with stocks trading flat on Wednesday morning (September 25), the Nasdaq Composite initially dipped by 0.13 percent after the opening bell. However, by midday, the tide had turned, with tech heavyweights NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) staging a remarkable comeback, erasing earlier losses for the index. Ultimately, the Nasdaq Composite closed a mere 0.17 percent above its opening level, while the S&P 500 and S&P/TSX Composite Index both backpedaled.

Thursday’s (September 26) weekly initial jobless claims data for the US revealed a praiseworthy figure of 218,000 new claims, falling below the estimated 225,000. This data, indicative of a strengthening labor market, brought a welcome dose of positivity to investors in the midst of market fluctuations.

The tech sector remained a focal point this week, attracting significant attention and investment interest as Micron Technology’s stock soared on the heels of heightened AI demand in an ever-evolving technological landscape.

Market Fluctuations and Growth

Boosted Gainers and Record Closings

Midday on Thursday, a surge in top gainers was witnessed, propelled by Micron’s positive forecast post Wednesday’s market closure. The S&P/TSX Composite Index marked a new record closing above 24,000 for the second time in the week. The PHLX Semiconductor Sector saw a substantial 3.77 percent climb due to gains in chip stocks. In addition, the S&P 500 hit an intraday high of 5,767.37 before slightly retracting to 5,745.37, still retaining a 0.4 percent increase. Notwithstanding, the Russell 2000 (INDEXRUSSELL:RUT) emerged as the lead gainer on Thursday with a 0.62 percent growth.

Inflation Data and Stock Stability

Friday’s (September 27) Personal Consumption Expenditures Price Index report unveiled a slight rise in inflation levels for August, resulting in minimal shifts in stock values. By the week’s end, the S&P 500 declined by 0.13 percent, while both the Nasdaq Composite and Nasdaq-100 (INDEXNASDAQ:NDX) showed decreases of 0.39 percent and 0.53 percent, respectively. Small-cap stocks persisted in outperforming, with the Russell 2000 exhibiting a 0.67 percent gain upon market closure.

Bitcoin’s Breakout

At the start of the week, the digital asset market experienced an upturn following the Fed’s rate adjustment. Although US$65,000 served as a notable resistance level, favorable market conditions and historical data hinted at a potential breakthrough. Bitcoin and Ether maintained stability during the week, with altcoins showing modest improvements. Their muted response amidst surging Asian markets insinuated a stronger correlation with US economic indicators. Furthermore, Bitcoin exchange-traded funds attracted substantial inflows, with Wednesday recording the highest of US$136 million in almost a month. However, Ether faced a dip after the US Securities and Exchange Commission postponed its decision on the approval of spot Ethereum ETFs until November, following a successful product approval for BlackRock’s iShares Bitcoin Trust ETF (NASDAQ:IBIT) the prior week.

Micron’s Stellar Q4 Performance

Micron announced its fourth fiscal quarter results and full-year 2024 outcomes on Wednesday, spurring an 18 percent surge in its share value on Thursday morning. By week’s end, Micron shares settled at US$107.47, reflecting a remarkable 16 percent weekly growth and a substantial 9.82 percent monthly increase. With Q4 revenue hitting US$7.75 billion, surpassing the previous quarter’s US$6.81 billion, the company demonstrated notable progress. The full-year revenue stood at US$25.11 billion, a significant rise from the US$9.57 billion reported in the corresponding year.

Sanjay Mehrotra, President, and CEO of Micron, expressed delight with the fiscal Q4 performance, citing a remarkable 93 percent year-over-year revenue surge. He highlighted robust AI demand driving data center DRAM products and high-bandwidth memory as major contributors to the success. Micron’s NAND revenue set a record, particularly propelled by data center SSD sales exceeding US$1 billion in revenue for the first time. Looking forward to fiscal 2025, Mehrotra anticipated record revenues in fiscal Q1 and substantial growth with improved profitability for the year.

The Dynamics of Recent Financial Events Unveiled

Chart via Google Finance.

Micron Technology performance, September 23 to 27, 2024.

Guidance for the company’s first fiscal quarter of 2025 outlines revenue of approximately US$8.7 billion, allowing a margin of US$200 million, indicating unwavering confidence in the semiconductor chip market’s vigor.

Micron’s soaring results reverberated throughout other chip stocks during the same week.

Shares of NVIDIA surged by 2.72 percent at Thursday’s opening bell, while Taiwan Semiconductor Manufacturing Company (NYSE: TSMC, TPE:2330) ascended by 3.37 percent. Advanced Micro Devices (NASDAQ: AMD) and Qualcomm (NASDAQ: QCOM) observed their stock prices escalate by 3.22 percent and 4 percent, respectively.

An Innovative Unveiling by Meta

Meta’s shares experienced a minor descent of 0.44 percent over the week following the Meta Connect event, taking place on Wednesday and Thursday.

The tech conglomerate showcased a plethora of innovations, including a cost-effective version of its Meta Quest 3 virtual reality headset, the Quest 3S, priced at US$299, set to supplant its Quest 2 and Quest Pro models by year-end. Additionally, they introduced limited-edition Wayfarer Ray-Ban Meta smart glasses, boasting live AI-driven reminders and translations.

Meta CEO Mark Zuckerberg unveiled upcoming AI functionalities, such as tools for creating lip-synced translations of Reels and voice chat capabilities. The event also featured Meta’s full-fledged holographic augmented reality glasses, Orion, offering a sneak peek into a long-in-development product. However, Zuckerberg clarified that it is not yet market-ready, providing no definitive launch date.

Furthermore, Meta launched the latest iteration of its language model, Llama 3.2, featuring compact versions tailored for edge and mobile devices. These versions can adeptly analyze text and images, handling vast amounts of text while maintaining context across prolonged conversations or documents. The enhanced model now supports eight languages, including English, German, French, Italian, Portuguese, Hindi, Spanish, and Thai.

Rumors Surrounding OpenAI’s Restructuring

Rumors swirled around OpenAI this week concerning a possible restructuring into a for-profit entity, as per a report by Reuters on Thursday. Market observers view this anticipated transformation as an effort to render the company, which is currently not publicly traded, more appealing to potential investors.

The speculations arrived on the heels of Chief Technology Officer Mira Murati’s announcement of her departure from OpenAI, alongside two other executives. Sources indicated that while the non-profit sector would endure, it would retain only a minority stake.

The proposed restructuring would also confer CEO Sam Altman with his inaugural equity share in the company, an equity stake that could potentially be valued at an astonishing US$150 billion if the plans come to fruition. No specific timeline for the restructuring initiative has been disclosed by the sources.

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