Tech Shares Lift US Stocks As Yen Surges

US stocks rebounded Thursday behind strong gains in tech shares ahead of key US jobs data, while the yen surged against the dollar, weighing on Japanese shares

New York, (UrduPoint / Pakistan Point News - 8th Dec, 2023) US stocks rebounded Thursday behind strong gains in tech shares ahead of key US jobs data, while the yen surged against the dollar, weighing on Japanese shares.

Artificial intelligence players Google and AMD both bounced following fresh announcements that underscored the market's appetite for the technology.

AMD surged nearly 10 percent after presenting its newest chip, the MI300, which is being positioned as a rival to a much-praised Nvidia product.

Google parent Alphabet won 5.3 percent as it demonstrated its new Gemini artificial intelligence model that the company said could outperform human experts in several areas of problem-solving, math, physics, history, law, medicine and ethics.

"This is incredible momentum, and yet, we're only beginning to scratch the surface of what's possible," Google chief executive Sundar Pichai said in a statement.

"This new era of models represents one of the biggest science and engineering efforts we've undertaken as a company."

The Nasdaq led major US indices, gaining 1.4 percent.

Most other Asian markets ended lower, and Europe's main exchanges also dipped.

Tokyo's stock index took by far the biggest fall among major indices, closing down nearly two percent as the yen surged against the dollar, which makes Japanese exports more expensive.

The yen strengthened more than two percent against the dollar on speculation the Bank of Japan (BoJ) could announce a shift away from its ultra-loose monetary policy at a meeting this month.

The Japanese currency has tumbled for much of the year owing to the BoJ's refusal to budge, but officials are shifting their positions as inflation rises.

Attention also focused on a looming US jobs report due Friday, with the idea it would confirm a gentle slowdown in the economy that could allow the US Federal Reserve to cut interest rates early next year.

After global equities rallied in November on optimism that the Fed was done with its rate-hike cycle, markets have pulled back on concerns the buying was overdone.

Data released this week on US job openings and from the private payroll firm ADP reinforced the view that the labor market and economy were slowing as inflation comes down. Jobless benefits claims data held steady.

"The slowdown in hiring continues and is becoming more obvious," said Peter Boockvar, author of the Boock Report.