The major US stock indices are closing higher on the day with the Dow gains outpacing the S&P and the NASDAQ indices
- Dow industrial average rose 408.44 points or 0.86% at 47,882.90
- S&P index rose 20.35 points or 0.30% at 6849.72
- NASDAQ index rose 40.42 points or 0.17% at 23454.09.
- The small-cap Russell 2000 rose 47.15 point or 1.91% at 2512.13.
The gains were help by lower rates and the hopes for lower rates by the Fed due to weaker than expected ADP data. The ISM and the S&P Global nonmanufacturing data was also mixed but not great.
The leaders in the Dow were led by
- UnitedHealth, +4.69%
- Goldman Sachs +2.63%
- McDonald’s +2.36%
- American Express +2.11%
- Amgen +2.09%.
Microsoft shares fell by $12.27 or -2.5% to $477.73. The Information did an article on the company, indicating that the company has lowered its AI software sales quotas after demand came in weaker than expected, reflecting hesitancy among corporate clients to adopt newer AI products.
According to industry analysts, many firms are still in the early stages of integrating AI into their existing IT systems, a transition that will take time. Gil Luria of D.A. Davison noted that while companies are working to upgrade infrastructure to support AI solutions, the pace of adoption remains gradual.
This article was written by Greg Michalowski at investinglive.com.