Wall Street has risen strongly this Monday (Dow Jones:+0.44%; S&P500:+1.55%; Nasdaq:+2.69%), with Nasdaq leading gains thanks to the impulse of Alphabet, which has once again renewed its historical highs, and tesla, which has skyrocketed over its plans to produce artificial intelligence (AI) chips. Google’s parent company has risen 6.31% and has renewed its historical highs, as it did last weekwith which the company tries to allay the fears that have arisen in recent weeks about a possible bubble around AI companies. Analyst Sergio Ávila assures that «Alphabet chains all-time highs thanks to the launch of Gemini 3 and the visible improvement in margins and growth of Google Cloud, with AI already crossing the entire ecosystem: search, YouTube and business services.» Meanwhile, Tesla has advanced 6.82% after the company’s CEO and founder, Elon Musk will announce his plans to produce AI chips.
«Many people are unaware that Tesla has had an advanced AI chip and board engineering team for many years. That team has already designed and deployed several million AI chips in our cars and data centers. «These chips are what allow Tesla to be a leader in AI in the real world,» Musk explained in his ‘X’ profile.
WITH THE FOCUS ON GEOPOLITICS
Furthermore, investors’ eyes are on the geopolitical situation, as The US and Ukraine are advancing a new peace plan to end the war with Russia. This, in a context of renewed optimism with the cuts of the Federal Reserve (Fed) and at the beginning of a festive week, since the American stock market will remain closed on Thursday for Thanksgiving Day and on Friday it will open only half a session. The Fed will hold its next monetary policy meeting on December 10 and the words of John Williamspresident of the New York Federal Reserve, who has assured that sees «room for further adjustment» in interest rateshas fueled hopes of a rate cut in the last conclave of the year. «Everyone interpreted it as a rate cut in December«Of course,» says Ipek Ozkardeskaya, senior Swissquote analyst. In fact, the odds of a 25 basis point cut have risen to 75.5%, according to CME’s FedWatch tool, from 42% a week ago. reference interest rates at 25 basis points, Williams’ statements once again ‘opened the door’ to a movement in that direction by the US central bank«, they point out in Link Securities. «After the latest employment data where we have seen an increase in the unemployment rate, which could go higher in the coming months, we believe that The Fed does not want to stay behind the curve and will cut interest rates progressively in the coming months despite the threat of inflation,» remarks Manuel Pinto, market analyst. Thus, in the coming days this issue will be one of those that will attract the most attention of investors, who see in this performance the catalyst that bags need to resume its upward trend. «In our opinion, the Fed will sooner or later lower its rates, being of little relevance whether it does so in December or January. What is really important is that the weakness of the US labor market, and as long as inflation allows it, will end up ‘encourage’ the FOMC to do so. We believe there is room to lower them, at least by 25/50 basis points.«, they comment on Link Securities. In addition, the president of the United States, Donald Trump, This Monday he maintained a telephone conversation with his Chinese counterpart, Xi Jinping, and has agreed to visit the Asian giant in April next year.
PEACE PLAN FOR UKRAINE
From a geopolitical point of view, The US and Ukraine continue negotiating and their positions are increasingly closer, which allows us to think about achieving a «refined» peace plan that allows ending the war with Russia. The White House has explained that both sides have developed an «updated and refined peace framework» and that they will continue to «work intensively on joint proposals in the coming days.» In this sense, Donald Trump has set November 27 as the deadline to reach an agreementalthough the US Secretary of State, Marco Rubio, who has traveled to Geneva (Switzerland) to lead the negotiations, clarified this Sunday that this date is not definitive and that it could be extended to next week. «There is still work to be done, and since this is still a work process, I don’t want to declare victory or the end«he said.
OTHER MARKETS
In other markets, oil West Texas has risen 1.46% ($58.91) and the Brent has added 1.41% ($63.44). For his part, the euro has appreciated 0.09% ($1.1522), and the ounce of gold has advanced 1.21% ($4,129). Furthermore, the 10-year American bond yield has relaxed to 4.04% and the bitcoin has gained 1.62% ($88,927).
