Both the S&P 500 and Nasdaq Composite are in the green heading to the bell, looking to end a three-day losing streak this week. So why are stocks up today?
Well, it seems falling domestic oil prices, Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) newly launched artificial intelligence (AI) system, and signs of a softening labor market have investors feeling optimistic today.
U.S. crude prices are down to $69 a barrel, the lowest in months. It seems an increase in U.S. gasoline inventories and uncertainty over demand are pushing prices lower. Indeed, the U.S. has been producing oil at an accelerated rate recently, likely in response to the extension of OPEC+’s production cuts, which are set to continue through the first quarter of 2024.
“While you have OPEC+ cutting production, you have a variety of countries that are increasing production outside the group, and also inside too actually,” said Matt Smith, Kpler’s lead oil analyst for the Americas.
Meanwhile, tech investors are enjoying the fruits of a Google-fueled surge today. The tech giant announced the release of its new AI system, named Gemini, on Wednesday. Previously hinted to release in 2024, Alphabet’s Chat-GPT alternative has come as a welcome surprise to investors.
GOOGL is up more than 5% today on the news, contributing to its 53% year-to-date gains.
Why Are Stocks Up Today?
The S&P 500 and Nasdaq Composite are up 0.8% and 1.36%, respectively, heading to the end of trade.
Equity markets have been a bit tenuous this week ahead of tomorrow’s crucial jobs report. Indeed, depending on the results of the November jobs report, expectations may be raised for rate hikes heading into 2024 — and/or a potential recession.
Weekly jobless claims increased last week, per the Labor Department. According to the October Jobs Opening and Labor Turnover Survey (JOLTS) report, also released this week, job openings per unemployed person fell to 1.3 in October, its lowest level in two years.
This preliminary data has some economists poised for a potential miss in tomorrow’s jobs report.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
