Meta Platforms' 11% Surge Sparks a Spectacular Comeback for the Magnificent Seven

[Financial News] Meta Platforms shares surged on the buzz surrounding its new artificial intelligence (AI) assistant, Muse, reigniting the AI rally on the New York stock market. The Magnificent Seven (M7) technology stocks, which had languished for some time, made a full-fledged comeback, while the tech-heavy NASDAQ Composite Index (NASDAQ) once again set a record high.
On the New York stock market on the 21st local time, shares of Meta Platforms soared 11% from the previous session. It was the company's biggest one-day gain in the past year, increasing Meta Platforms' market capitalization by approximately $192 billion, or about 258 trillion won, in a single day.
The decisive catalyst for the market was Muse, Meta Platforms' newly launched premium AI assistant. Muse ranked No. 1 in downloads on Apple's App Store shortly after its release, abruptly reversing Wall Street's skepticism toward Meta Platforms' massive AI investment. Youssef Squali, an analyst at Truist, said, "Muse is Meta Platforms' clearest attempt to create revenue streams beyond advertising," and gave the product strong marks for its commercial prospects.
Buoyed by Meta Platforms' surge, all of the M7 stocks—including Alphabet, Amazon, Apple, Microsoft, NVIDIA, and Tesla—closed higher. Related exchange-traded funds also set new highs for the first time since May.
The renewed AI boom spread to data-center and semiconductor stocks. Intel shares jumped 12%, while Advanced Micro Devices (AMD) rose 10%, making it the 14th U.S. company to reach a market capitalization of $1 trillion.
As appetite for risk assets rapidly returned, the cryptocurrency market also heated up. Bitcoin prices surpassed the $86,000 mark for the first time since January, while MicroStrategy, a company that holds a large amount of Bitcoin, saw its stock climb 9.5%.
The NASDAQ rose 2.3% that day, marking its third consecutive advance and reaching a record high. The S&P 500 Index gained 1.5%, while the Dow Jones Industrial Average (DJIA) rose 0.7%, or 366 points.
Although concerns remain about the possibility of further interest-rate hikes by the Federal Reserve and persistently high inflation, analysts say they are not enough to halt the AI-driven momentum in the stock market. Brad Gonger, chief investment officer (CIO) at Hurtle & Company, said, "The stock market is currently looking beyond interest-rate and inflation concerns and focusing solely on the potential for AI-driven growth."

[email protected] Yoon Jae-jun Reporter