Amazon’s (NASDAQ: AMZN) shares have surged in 2023, riding the wave of the tech sector’s robust performance amid the prevailing artificial intelligence (AI) craze.
As one of the Magnificent Seven stocks propelling the S&P 500 to a recent 2-year high, AMZN marked another milestone on Wednesday, December 13, as its shares hit a new 52-week high, one of many it registered over the past couple of months.
What’s driving AMZN’s shares?
The latest upswing in Amazon’s stock came in what was an all-around very positive session for US and global stocks, propelling several market indices to all-time highs.
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Notably, the equity markets edged higher across the board on December 13 after the Federal Reserve kept policy rates unchanged at its most recent meeting. More importantly, the US central bank signaled plans to begin cutting rates in 2024, confirming investors’ earlier expectations of an imminent dovish pivot.
However, Amazon’s upward trajectory began long before the Fed’s latest message. After dropping toward $80 in late 2022, the stock embarked on a fresh uptrend fueled by improved sentiment in the tech market following the emergence of ChatGPT and other groundbreaking generative AI products.
This trend reignited clients’ interest in Amazon’s AI-buffed cloud and other offerings, which has then been reflected in the company’s 2023 quarterly reports.
S&P 500 surges tΩo 4,700 as Big Tech marches on
Alongside Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Meta Platforms (NASDAQ: META), Jeff Bezos’s tech giant is one of the companies leading the ongoing AI revolution.
As a result, these companies have propelled the broader S&P 500 index above 4,700, a level not seen since December 2021.
Although many factors remain uncertain, Big Tech appears poised for sustained momentum in the coming years, buoyed by potentially favorable 2024 market conditions and the nascent stages of the ongoing AI boom. On the other hand, it is important for investors to keep tabs on potential risks such as recession and a so-called “hard landing” for the US economy.
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