Here are the key updates that investors should know before they start trading today:
1. Good Times for Bulls
The bulls, or those optimistic about the market, have reason to cheer. On Thursday, the Dow Jones Industrial Average continued its upward trend, reaching a new all-time high. This week alone, it has gone up by 2.8%, marking its longest winning streak in nine weeks since 2019. The S&P 500, another important market indicator, is also on the rise and might soon hit its own record high.
This broad market index, which saw an increase on Thursday, is less than 1.6% away from its highest close in January 2022. As if that wasn’t positive enough, a real bull caused a disruption on New Jersey train tracks on Thursday, affecting commuter service between Newark, New Jersey, and New York City.
2. Hitting the Brakes
On Thursday, General Motors’ Cruise announced that it will reduce its workforce by laying off 900 employees, which is nearly a quarter of its total staff. These layoffs mainly affect commercial operations and related corporate functions. This decision comes after Cruise had already laid off some contractors last month.
Just a day before this announcement, the self-driving car company let go of nine “key leaders” amidst ongoing safety investigations triggered by an October accident in San Francisco, which led to the grounding of Cruise’s robotaxi fleet.
Additionally, GM plans to lay off around 1,300 workers in Michigan starting early next year, with most of these layoffs being anticipated due to the discontinuation of certain vehicle models.
3. Change in LinkedIn’s Plans
LinkedIn is changing its course of action. The social media platform has canceled a project called “Blueshift,” which aimed to transfer its data center technology to Microsoft Azure, causing a setback for its parent company.
This decision marks a significant change for LinkedIn. Initially, in 2019, the platform had announced its intention to shift to Azure, and this move came three years after Microsoft acquired LinkedIn for $27 billion.
Microsoft, competing with Amazon Web Services in the lucrative cloud infrastructure market, heavily relies on cloud technology and services to drive a substantial part of its growth.
4. The Latest Chip from Intel
Intel is entering the AI scene with a bang. At an event in New York on Thursday, the company introduced new computer chips, including one specifically designed for generative AI software. This AI chip, named Gaudi3, aims to compete with similar chips from rivals Nvidia and AMD.
Although Intel didn’t provide many details about Gaudi3, it is positioning itself to attract AI companies away from Nvidia, which currently holds a dominant position in the market.
Nvidia, known for its technology powering some of the most prominent AI models like OpenAI’s ChatGPT, has experienced a significant stock surge of nearly 230% year to date, while Intel shares have risen by 68%.
5. Ukraine-EU talks
Ukraine has progressed in its journey toward European Union membership as leaders in Brussels have given the green light to start negotiations with the country. President Volodymyr Zelenskyy sees this unexpected decision as a “victory” for Ukraine and Europe.
Although Hungary initially intended to block the move during the two-day EU summit, it abstained from the vote. Despite this positive development for Ukraine, discussions about funding hit a roadblock when Hungary’s prime minister vetoed a crucial 50 billion euro ($55 billion) financial package for Ukraine.
Summary
The stock market looks positive as the Dow Jones hits new highs. General Motors is cutting jobs, LinkedIn changes its tech plans, Intel introduces new AI chips, and Ukraine moves closer to EU membership. However, financial talks hit a snag. Investors need to stay optimistic but cautious amid these diverse market changes.
