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Financial Markets 10/02 09:39
NEW YORK (AP) -- U.S. stocks are drifting around their records on Thursday
as technology stocks keep rising and as Wall Street keeps ignoring the shutdown
of the U.S. government.
The S&P 500 rose 0.3%, coming off its latest all-time high. The Dow Jones
Industrial Average added 78 points, or 0.2%, as of 9:35 a.m. Eastern time, and
the Nasdaq composite was 0.5% higher and heading toward its own record.
Thursdays on Wall Street typically mean investors are reacting to the latest
weekly tally of U.S. workers applying for unemployment benefits. But D.C.'s
shutdown means this week's report on jobless claims has been delayed. An even
more consequential report, Friday's monthly tally of jobs created and destroyed
across the economy, will likely also not arrive on schedule.
That increases uncertainty when much on Wall Street is riding on investors'
hopes that the job market will slow by a precise amount: enough to convince the
Federal Reserve to keep cutting interest rates, but not by so much that it
leads to a recession.
So far, the U.S. stock market has looked past the delays of such data.
Shutdowns of the U.S. government have tended not to hurt the economy or stock
market much, and the thinking is that this one could be similar, even if
President Donald Trump has threatened large-scale firings of federal workers
this time around.
That left corporate announcements as the main drivers of trading Thursday.
Stocks in the chip and artificial-intelligence industries climbed after
OpenAI announced partnerships with South Korean companies for Stargate, a $500
billion project aimed at building AI infrastructure.
Samsung Electronics rose 3.5% in Seoul, and SK Hynix jumped 9.9%.
The announcement also sent ripples around the world. On Wall Street,
Advanced Micro Devices climbed 3.5%, and Broadcom gained 2.5%. Taiwan
Semiconductor Manufacturing Co., a major maker of chips, saw its stock that
trades in the United States rise 1.2%.
Excitement around AI and the massive spending underway because of it has
been a major reason the U.S. stock market' has hit record after record, along
with hopes for easier interest rates. But AI stocks have become so dominant,
and so much money has poured into the industry that worries are rising about a
potential bubble that could eventually lead to disappointment for investors.
Occidental Petroleum fell 2.3% after it agreed to sell its chemical
business, OxyChem, to Berkshire Hathaway for $9.7 billion in cash. It could be
the final big purchase for Berkshire Hathaway with famed investor Warren
Buffett as its CEO.
Fair Isaac jumped 22.2% after announcing a program that will allow mortgage
lenders to access and distribute FICO credit scores directly to their
customers, cutting out such big credit bureaus as TransUnion, Equifax and
Experian.
TransUnion's stock tumbled 11.9%, while Equifax slid 10.2%. The stock of the
United Kingdom's Experian fell 3.6% in London.
London's FTSE 100 edged down by less than 0.1%, but indexes were much
stronger across Europe and Asia. South Korea's Kospi jumped 2.7% for one of the
biggest gains following the big jumps for Samsung Electronics and SK Hynix.
In the bond market, the yield on the 10-year Treasury ticked down to 4.11%
from 4.12% late Wednesday.
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AP Writers Teresa Cerojano and Matt Ott contributed.
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