Both Microsoft and Alphabet have launched an array of AI products since OpenAI, backed by Microsoft, released ChatGPT in late 2022. Investors expect the new products will help tech giants offset a slowdown in their cloud businesses.
Shares in the owner of Google and the maker of Windows climbed 0.6% and 1.7%, respectively. "When you have this much enthusiasm for a specific investing theme, you don't need much of a reason for markets to move. It's inertia," said Steve Sosnick, chief strategist at Interactive Brokers. With the U.S. central bank on track for another 25-basis point interest rate hike on Wednesday, policymakers face a"The Federal Reserve meeting tomorrow is reminding the market that it will be the second to last, if not the last, interest rate increase, and that has been a major concern for markets, particularly for tech stocks," said Rishi Sadarangani, chief investment officer at hedge fund R/Evolution Gate.