S&P 500 And Nasdaq Set To Jump As Nvidia Becomes King of Stocks 👑

MARKETS
AI to Disrupt Banks Jobs More Than Other Sectors According to Citi

Citigroup believes AI is set to displace more jobs across the banking sector than any other sector. It says artificial intelligence will make consumer finance and bank workers more productive.

It expected 54% of jobs may be automated according to a new report on AI. It expects an additional 12% of roles may be changed with the technology.Citigroup plans to have 40,000 coders experiment with varying AI technologies. It is using generative AI to easily comb through hundreds of pages of regulatory proposals. Our focus now is to take it from the lab to the factory floor, said Jane Fraser, CEO of Citigroup. They are also exploring the use of AI to offer custom investment recommendations for wealth clients.

Other banks like JPMorgan are hiring talent to economize on the AI technology and believes employers will shrink the workweek to just 3.5 days. Deutsche Bank is also using AI to scan wealthy-client portfolios. Revolut is using AI to capture more than 30% of all customer chats and expects this to grow through efficiently managed genAI.

However, even if AI replaces roles across the banking industry, Citigroup still sees the potential to hire a bevy of AI managers and AI-focused compliance officers. So it may not lead to an overall drop in headcount. Citigroup also recognized the limitations of AI and commented that AI models are also known to hallucinate and create information that does not exist.

MARKETS
Market Recap - 18thJune

Markets were closed Wednesday for the Juneteeth holiday. Post the record set in Nvidia on Tuesday the markets made some fresh highs with the S&P 500 +0.25%to close at 5,487.03, the NASDAQ +0.03% to close at a record high of 17,862.23, while the Dow Jones Industrial Average +0.15% to close at 38,834.86. The VIX was at 12.57.

Today we are watching Walgreens and Ge Vernova Inc. Pharmacy giant Walgreens closed up 6.34% on Tuesday to close at 16.11 after a report highlighted its attractive dividend and the potential for the CEO to lead a turnaround.

Shares in the energy company that completed its spinoff from the General Electric conglomerate, Ge Vernova Inc, closed up 6.41% to close at 179.57. The company announced that it sold its steam energy business to EDF and it also signed a memorandum with Ukrainian company DTEK to develop renewable energy projects for the Ukraine and the EU.

MARKETS
S&P 500 And Nasdaq Set To Jump As Nvidia Becomes King of Stocks

As Nvidia reached a record on Tuesday to become the worlds most valuable listed company, the broader indexes are primed for gains post the holiday break on Wednesday.

The growth story for stocks has been fuelled by excitement around the potential for AI. Nvidia took the number 2 spot from Apple two weeks ago and has now surged past Microsoft to number one with a 3.335 trillion market cap. The stock was trading up 3.47% in pre-market trading at 140.28 and is now the king of stocks.