THE WEEK ON WALL STREET
Stocks vaulted to new heights last week on the back of an artificial intelligence (AI) semiconductor company, marking investors’ belief that AI has the potential to transform the U.S. economy.
FACT OF THE WEEK
On this day in history, two national parks were established in the United States 10 years apart—the Grand Canyon in 1919 and the Grand Tetons in 1929.
Located in northwestern Arizona, the Grand Canyon is the product of millions of years of excavation by the mighty Colorado River. The chasm is exceptionally deep, dropping more than a mile into the earth, and is 15 miles across at its widest point. The canyon is home to more than 1,500 plant species and over 500 animal species, many of them endangered or unique to the area, and its steep, multi-colored walls tell the story of 2 billion years of Earth’s history.
In January 1908, U.S. President Theodore Roosevelt designated more than 800,000 acres of the Grand Canyon a national monument; it was designated a national park under President Woodrow Wilson on February 26, 1919.
Ten years later to the day, President Calvin Coolidge signed into law a bill passed by both houses of the U.S. Congress establishing the Grand Teton National Park in Wyoming.
Home to some of the most stunning alpine scenery in the United States, the territory in and around Grand Teton National Park also has a colorful human history. The first Anglo-American to see the saw-edged Teton peaks is believed to be John Colter. After traveling with Lewis and Clark to the Pacific, Colter left the expedition during its return trip down the Missouri in 1807 to join two fur trappers headed back into the wilderness. He spent the next three years wandering through the northern Rocky Mountains, eventually finding his way into the valley at the base of the Tetons, which would later be called Jackson Hole.
MARKET MINUTE
Stocks Rally To Record Highs
Stocks traded in a fairly tight range for the first half of the short week, yawning at the lack of economic data while awaiting earnings results from one key company that creates chips that power the artificial intelligence operations of many firms. A strong Q4 corporate report and long-term message from Nvidia Corp. pushed the S&P 500 and Nasdaq to new closing highs on Thursday. Nvidia’s market cap rose by $277 billion on the news, pushing it to a $2 trillion valuation. To put that in perspective, Nvidia's market cap is now roughly the same size as Canada’s economy. Its 16% gain on Thursday was the largest one-day market cap increase by any U.S. company.
Please note: the companies mentioned here are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of any company connected with AI.
Inflection Point?
Nvidia’s seismic increase in market cap gave investors pause for reflection, wondering whether this marked an inflection point for artificial intelligence. The main story that investors took away was that, because of its market dominance as the leading global provider of AI computer chips, Nvidia served as a proxy for AI. Some of the world’s most influential companies rely on Nvidia technology to power their own AI initiatives. Investors appear to have concluded that AI’s impact may just be starting and anticipate it will be a driving economic force in 2024 and beyond.
FINANCIAL STRATEGY OF THE WEEK
Please Leave Home Without It
Concerns over identity theft continue to grow, especially with the news of data breaches at major companies and financial institutions. Unfortunately, you have little control over when a company is hacked, but you do have control over your own actions.
Ten Things to Leave at Home
- Social Security Card - A Social Security card may be used to open credit card accounts and take out loans. Taking it out where it might be stolen is tantamount to handing the keys to the kingdom to a thief. As for seniors, while Social Security numbers have been removed from Medicare cards, your Medicare Beneficiary Identifier number is also worth shielding.
- Multiple Credit Cards - Carry a single card for general use and emergencies. Only carry another card if you plan on using it that day. Keeping all those cards at home will save you considerable time in reporting lost cards and disputing charges should your purse or wallet get stolen.
- Gift Cards and Certificates - They’re like cash. Keep them home until you’re ready to use them.
- Spare Keys - Your wallet or purse contains your home address. No sense making the theft worse by endangering your home and family.
- USB Drive - Very convenient for carrying important files, but it’s gone forever if your wallet or purse is lost or stolen.
- Password Cheat Sheet - Carrying passwords makes it possible for them to fall into the wrong hands. Don’t carry your cheat sheet? How about those ATM PINs? That’s a sure way to lose cash fast.
- Checks - Carrying around a blank check is an obvious risk. Even a canceled check is a risk, since it has your routing and account numbers, which may be used to transfer cash.
- Receipts - Besides being bulky, they will contain the last five numbers of your credit card. A thief might be able to “phish” to find the rest of these numbers.
- Passport - A thief could use this to travel under your name, open bank accounts, or even get a Social Security card. Not good.
- Business Cards - Consider a separate case and carry them in your pocket. Do you really want a thief to know where you work?