AI Drives Tech Rebound, Oil Soars, Bitcoin Tumbles: What's Driving Markets Thursday?

During midday Thursday trading in New York, U.S. stocks displayed mixed performance, with the technology sector outperforming others as investors maintained a bullish outlook on artificial intelligence, temporarily setting aside concerns about interest rates.

Additionally, economic data released Thursday morning revealed a robust labor market, with unemployment benefits registering well below expectations for the last week.

Atlanta Fed President Raphael Bostic stated his preference for the start of the rate reduction cycle in the third quarter, emphasizing the importance of avoiding premature cuts that could reignite demand and price pressures, aligning with recent comments made by his colleagues. He mentioned a willingness to initiate rate cuts before July should compelling evidence suggest faster-than-expected inflation deceleration.

The U.S. dollar index (DXY) moved higher, on track to close at its highest level since Dec. 12. Treasury yields also kicked higher, with the 10-year yield rising to 4.14% and the 30-year yield reaching 4.38%. Bonds tumbled, with the iShares 20+ Year Treasury Bond ETF (NYSE:TLT), falling 1%.

Bitcoin (CRYPTO: BTC) experienced a sharp 3% decline, dropping below the $42,000 threshold. This cryptocurrency has witnessed a significant 15% decrease since last week’s surge fueled by speculation about the potential approval of a spot Bitcoin ETF.

Thursday’s Performance In US Major Indices, ETFs

IndexPrice%
Nasdaq 10016,848.750.7%
S&P 5004,746.440.2%
Dow Jones37,210.41-0.2%
Russell 20001,903.12-0.4%

Sector-wise, the Technology Select Sector Fund (NYSE:XLK) outperformed, up 1.2%, followed by the Communication Services Select Sector Fund (NYSE:XLC).

The Utilities Select Sector Fund (NYSE:XLU) was the laggard, down 1.4%, while the Real Estate Select Sector SPDR Fund (NYSE:XLRE) witnessed another 1% decline.

On an industry level, the VanEck Semiconductors ETF (NYSE:SMH) rose the most, up 2.2%. Clean energy stocks underperformed, with the Invesco Wilderhill Clean Energy ETF (NYSE:PBW) down 2.1%.

Thursday’s Stock Movers

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Photo via Pixabay.

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