Tech-Fueled Rally Pushes Wall Street to Record Highs Amid Cooling Inflation and Fed Caution
Thursday evening saw U.S. stock index futures take a breather after tech shares propelled Wall Street to new record highs, courtesy of some cooling inflation data. Wall Street’s optimism, largely fueled by artificial intelligence, came despite the Federal Reserve’s stern reminder that interest rate cuts in 2024 might be a rare species.
The S&P 500 Futures dipped slightly by 0.05% to 5,435.75 points, Nasdaq 100 Futures held steady at 19,606.75 points, and Dow Jones Futures slid 0.1% to 38,646.0 points as of 19:17 ET (23:17 GMT). This pause came after a four-day streak of record highs in the S&P 500 and Nasdaq, driven by tech stocks’ persistent rally.
Apple Inc. (NASDAQ) made headlines with its significant leap into AI, further inflaming the tech rally and briefly reclaiming its throne as the most valuable company on Wall Street. This tech enthusiasm nudged the S&P 500 up 0.2% to a record 5,433.74 points and the NASDAQ Composite up 0.3% to a record 17,665.90 points. However, the Dow Jones Industrial Average, less enthused, dipped 0.2% to 38,647.10 points.
Adding to the good vibes, the Producer Price Index data revealed an unexpected drop in factory prices for May, feeding the disinflation narrative. This came hot on the heels of softer consumer price index data, kindling hopes that inflation was finally cooling.
Despite this optimism, the Federal Reserve’s warning of a solitary rate cut this year, coupled with a higher inflation outlook, seemed to temper Wall Street’s pace after a robust four-day run.
Meanwhile, tech stocks continued their victory lap with Broadcom Inc. (NASDAQ) soaring 12% on stellar quarterly earnings driven by AI demand. Adobe Systems Incorporated (NASDAQ) also saw a 15% aftermarket surge, thanks to strong earnings and an upbeat 2024 guidance boosted by its AI-powered tools. Electric vehicle giant Tesla Inc. (NASDAQ) jumped nearly 3% on Thursday and tacked on another 0.5% in aftermarket trading after shareholders approved a contentious $56 billion pay package for CEO Elon Musk and the company’s reincorporation in Texas.
VCI Global Enters Into Partnership to Develop Large-Scale Bitcoin Mining Opportunities
KUALA LUMPUR, Malaysia, June 13, 2024 (GLOBE NEWSWIRE) — VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, “VCIG”, or the “Company”), is pleased to announce a strategic partnership aimed at advancing large-scale Bitcoin mining farm. VCI Global will collaborate with Emerging Hub Limited (“Emerging Hub”), a company co-founded by Mr. Wallace Ma, who is well established in this sector with extensive experience in the industry with 6,000 Bitcoin miners currently in operation.
According to Statista, as of June 2024, Bitcoin’s market capitalization continues to grow, reaching US$ 1.39 trillion with an annual growth rate of 178.4%, reinforcing its position as a leading store of value in the cryptocurrency landscape. This unique proposition makes Bitcoin an attractive investment choice, distinguishing it from traditional assets. As VCI Global and Emerging Hub embark on their strategic partnership to advance large-scale Bitcoin mining farms, they recognize the inherent stability and growth potential that Bitcoin offers.
In phase one of this partnership, a 35-megawatt (MW) Bitcoin mining farm will be developed, expected to accommodate 10,000 Bitcoin mining rigs that together are forecasted to generate over 2 exahashes per second (EH/s), projected to yield over 500 Bitcoins by the end of the first year. Subsequently, production will gradually increase, and more mining rigs will be added in subsequent phases. The objective is to mine over 2,000 Bitcoins within a five-year period. Based on the current market price of over US$ 65,000 per Bitcoin, this would value the total mined Bitcoin at around US$ 130 million, without considering any price appreciation. Under this arrangement, VCIG anticipates securing a 30% share of the mined Bitcoin.
VCIG and Emerging Hub have initiated negotiations with certain government bodies and a prominent energy player, who will be supplying environmentally friendly Liquefied Natural Gas (LNG) to power the mining machines, ensuring sustainable and efficient operations.
“Our venture into Bitcoin mining is not only about embracing innovation but also positioning ourselves at the forefront of the digital economy’s evolution. Bitcoin represents a paradigm shift in monetary systems, embodying scarcity and security in our increasingly digital world. As the most secure and decentralized digital asset, Bitcoin stands as a robust store of value. Its limited supply and growing market capitalization offer significant potential for value appreciation, especially as it garners mainstream acceptance through initiatives like ETF launches and regulatory approvals by major institutions,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
Read full press release here.
Investing on a Friday is like buying a lottery ticket at a thrift shop: you might just snag a treasure, but you also risk ending up with a vintage collection of market regrets. As the clock ticks toward the weekend, traders morph into fortune tellers, predicting Monday’s headlines with the accuracy of a weather forecast from a crystal ball. So, whether you’re diving in with the gusto of a karaoke singer hitting the high notes or tiptoeing around like a cat avoiding a bath, just remember—Wall Street’s mood can swing faster than a caffeinated squirrel on a trampoline.