On Thursday, the Nasdaq Composite surged more than 2.5%, marking its best performance in over a month, driven by gains in chipmakers like Micron and Advanced Micro Devices, which rose over 17% and 13%, respectively.
This rally followed reports that Situational Awareness, an AI-focused hedge fund, was selling its public investments to Citadel, which Jim Cramer suggested would help stabilize the AI sector after recent sell-offs. Other AI-related stocks, including Nvidia and Broadcom, also saw increases.
In contrast, some software and healthcare stocks faced declines, with Salesforce dropping over 4% and Eli Lilly falling nearly 4% after cutting its full-year adjusted earnings per share guidance due to acquisition-related costs. However, this adjustment is not indicative of a decline in Eli Lilly's core business, as it is linked to strategic investments in CAR-T therapies.
The company is also set to discuss its recent authorization for a robotic surgical system in an upcoming investor call. Looking ahead, earnings reports from major companies like Apple and Amazon are anticipated, along with updates from Linde and Eaton, which will provide further insights into market trends