Artificial Intelligence play Nvidia (NVDA) led the chip sector lower, down 2.89%. AMD fell by 2.66%. Microsoft’s (MSFT) President, Brad Smith, said that the tech sector is unlikely to create a super- intelligent AI in the next 12 months. Expect years or decades before that prognostication turns into reality.
Impatient markets took advantage of the forecast to sell NVDA stock.
Tesla (TSLA) shed 1.51% ahead of the Cybertruck launch. Ford (F) lost 2.88% on expectations that sales for its Lightning truck would worsen. With weak demand ahead, Ford needs to slash its truck EV prices. This will increase its losses in the EV market.
IBM (IBM), Salesforce (CRM), and Packaging Corp of America (PKG) are S&P 500 stocks trading at fresh highs.
Healthcare stocks are higher after AbbVie (ABBV) announced it would buy ImmunoGen (IMGN) for $10 billion. IMGN stock rose by 82.4%. ABBV stock gained 2%. ImmunoGen develops a novel cancer drug class of ADCs (antibody-drug conjugates).
Should markets close lower today, it will still close November with the S&P 500 up by 8.5%, compared with Nasdaq’s (QQQ) 10.12% monthly return. For December, the annual Santa Clause rally may propel the indices to more gains. However, markets need to watch the Federal Reserve’s last meeting of the year. The Central Bank will add more clarity on its interest rate policy.
