Tech Stocks Soar on Stargate AI Project, Despite U.S. Shutdown
The tech industry buzzed with activity this week. OpenAI, Oracle, and SoftBank joined forces to fund the $500 billion Stargate AI project. Meanwhile, the U.S. government shutdown delayed crucial economic reports, and a major stock market rally saw record highs.
The Stargate project, aimed at advancing AI development, attracted significant investment. OpenAI, Oracle, and SoftBank are backing the initiative, which is expected to create five new data centers in the U.S. The announcement drove up stocks in the chip and AI sectors, with Samsung Electronics, SK Hynix, AMD, Broadcom, and Nvidia all seeing gains.
The U.S. government shutdown did not deter the stock market's upward trajectory. Despite delayed unemployment and jobs reports, the S&P 500, Dow Jones, and Nasdaq all reached new records on Thursday. Technology stocks, in particular, continued their upward trend, contributing to the overall market gains.
Fair Isaac's announcement of a program to streamline access to FICO credit scores sent TransUnion and Equifax stocks tumbling. Investors are now eagerly awaiting jobs news to inform the Federal Reserve's interest rate decisions. In other news, Occidental Petroleum agreed to sell its chemical business, OxyChem, to Berkshire Hathaway for $9.7 billion in cash.
This week's market activity was dominated by tech stocks, driven by the OpenAI-led Stargate project and Fair Isaac's announcement. Despite the government shutdown, the stock market remained resilient, reaching new records. As the week closes, investors look ahead to jobs news and its potential impact on interest rates.
