All eyes were on interest rates this week as the US Federal Reserve’s two day meeting took place.
Meanwhile, Bitcoin and Ether rallied later in the week, but analysts are uncertain about the sustainability of their gains.
Stay informed on the latest developments in the tech world with the Investing News Network’s round-up.
With the Fed’s meeting in focus, investors in the US adopted a cautious stance to start the week.
Stocks were slightly elevated on Wednesday (September 18) morning. The S&P 500 saw the most significant gains early on, while the Nasdaq Composite opened a modest 0.2 percent higher than Tuesday’s close.
The price of Bitcoin ultimately trended up this week despite some volatility.
The cryptocurrency traded between US$59,770 and US$60,220 over the weekend, but started falling around noon on Sunday (September 15). As of 11:10 a.m. EDT on Monday, it was at US$57,673, down 4.2 percent in 24 hours.
Bitcoin and Ether saw modest gains of 3.5 percent and 2.96 percent, respectively, as the Fed meeting kicked off on Tuesday. Bitcoin was priced above US$61,000 briefly just before midday, while Ether saw gains of nearly 3 percent, allowing it to rise above US$2,300 for the first time since September 10.
After the Fed’s rate cut, Bitcoin trended upward, eventually rising above US$62,000 for the first time since August 27. Ether also rallied, pulling above US$2,400 for the first time all week. Unlike previous spikes seen in recent weeks, both cryptocurrencies have managed to hang onto their gains and continue to climb.
However, the historical correlation between Bitcoin and the S&P 500 suggests a potential Bitcoin price drop following the Fed’s rate cut. This correlation has been particularly strong during times of economic stress or uncertainty.
The crypto market showed strong signs on Thursday, with Bitcoin rising 5.1 percent to US$63,550, its first break above US$63,00 since August 26. Ether also saw substantial gains, climbing 6 percent to US$2,471.97 at 3:00 pm PST.
Microsoft made strides this week, reporting a dividend increase, a major share buyback program and new partnerships focused on artificial intelligence (AI) infrastructure and responsible AI development.
GAIIP plans to attract additional investors, with an initial target of US$30 billion in private equity capital, potentially leveraging this into a total investment pool of up to US$100 billion.
The data centers will focus on establishing “tesponsible AI,” with the first working on developing best practices and standards for ethical AI use in the Middle East and Global South. The second will be an expansion of Microsoft’s AI for Good Research Lab, supporting AI projects targeting important social challenges.
Microsoft ended the week with the announcement that it will buy power from the Three Mile Island nuclear power plant as part of a 20 year agreement that will fuel its data centers with carbon-free nuclear energy.
The company will also need approval from the US Nuclear Regulatory Commission and various state and local agencies. Constellation plans to pursue a license renewal to extend operations until 2054.
The grid is expected to be operational by 2028.
“Intel is proud of our ongoing collaboration with the U.S. Department of Defense to help strengthen America’s defense and national security systems,” said Chris George, president and general manager of Intel Federal.
Intel’s share price rose 2.37 percent to close at US$20.91 on Monday. It rose in after-hours trading and opened on Tuesday morning at US$21.73, 3.9 percent higher than Monday’s close.
Over the past five days, Intel’s shares have shown a positive trend, increasing by 9.04 percent. However, the stock is down 54.31 percent year-to-date, highlighting a challenging period for the company.
The Photos app got the biggest overhaul, with more Collections tabs for easier photo discovery, enhanced by on-device intelligence for library organization, a customizable layout and a new unified design for a scrollable view.
Additionally, users with M4-equipped iPad Pros reported that the upgrade “bricked” their devices, rendering them unresponsive to attempts to restart. M4 is a type of chip used by the company.
The market’s reaction to these issues was minimal, and Apple’s share price is up 5.37 percent for the week.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Leave a Reply