Amazon Launches New AI Center
Yesterday, Amazon put out news that it is investing $100 million in a new Generative AI Innovation Center. The purpose of this is to help customers collaborate with and incorporate AI technology into their businesses. With this news, investor sentiment raised and Amazon shares jumped 4.3%, as many traders also proceeded to purchase calls. The market this week has been on track for slim weekly losses, but it’ll be interesting to see how much of an effect the AI mania will have on these stocks.
European Data Disappoints
European equities took a tumble on Friday as they deal with harsher-than-expected economic data. This comes after a hawkish undertone from European central bank leaders, as the US and Europe continue to battle persistent inflation. While the US has made great strides in decreasing inflation closer to the 2% target, the same can not be said for European nations, which are still at 6.1%. While European bonds and equities have faced a sell-off today, it may present an opportunity to buy-in at lowered pricing due to reduced market sentiment.
Tech Stocks Lose Steam
Investor enthusiasm about artificial intelligence has boosted shares in megacap technology companies in recent weeks, helping power indexes higher. But those tech companies were among the worst performers on Wednesday. Microsoft, Alphabet and Meta Platforms fell between 0.9% and 2.1%. Chip makers also dropped, with Nvidia losing 1.7% and AMD sliding 5.7%. Despite the declines, investors and analysts generally remained calm, arguing that tech stocks in particular were due for some consolidation after their outsize recent gains.
Airbus & Boeing Land New Air India Deals
Air India on Tuesday said it had firmed up its order for 250 passenger planes from Airbus (OTCPK:EADSY) (OTCPK:EADSF) and 220 from Boeing (NYSE:BA) in a deal valued at $70 billion at list prices before customary discounts. The airline, owned by Indian industrial conglomerate Tata, signed separate agreements with the two plane makers at the Paris Air Show. Its announcement came a day after domestic rival IndiGo agreed to buy 500 single-aisle planes from Airbus (OTCPK:EADSY) (OTCPK:EADSF). The orders from Indian airlines come as the country experiences surging demand for domestic and international travel.