Nvidia announces 2 deals with OpenAI and Alibaba, Fed Chair Powell discusses AI impact on jobs

Market Overview - Stocks are showing upward momentum, driven by expectations of interest rate cuts and positive sentiment around AI investments [1][2] - Major indices are trading in the green, with the Dow close to record highs and the Nasdaq recovering momentum [2][3] Company Highlights - Micron reported strong earnings, beating expectations on both revenue and guidance, leading to price target increases from several firms [2][3] - Alibaba plans to invest billions in AI development, significantly impacting its stock performance, which rose approximately 9% [2][3] - Nvidia continues to be a key player in the AI sector, with its stock up over 30% year-to-date, and recent partnerships with OpenAI and Alibaba further solidifying its market position [4][5][6] AI Sector Insights - There is a prevailing sentiment that fears of an AI investment peak are unfounded, as recent news from companies like Micron and Alibaba suggests ongoing growth [29] - Analysts believe that the AI infrastructure growth is not limited to chip manufacturers but extends to various sectors, including utilities and energy [2][3] Labor Market Implications - Fed Chair Jerome Powell indicated that AI may be contributing to lower hiring rates among recent graduates, suggesting potential labor market weaknesses ahead [3][4] - The effectiveness of potential interest rate cuts by the Federal Reserve may be limited if companies are hesitant to hire due to AI advancements [3][4] Cryptocurrency Developments - Tether is reportedly in talks to raise up to $20 billion, potentially valuing the company at $500 billion, which could influence the cryptocurrency market positively [3][4]