The Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) is experiencing a notable uptick, driven by a surge in the tech sector, particularly in AI-related stocks. Broadcom's announcement of a significant increase in demand for its AI chips has sent ripples through the market, boosting tech stocks across the board. Broadcom's shares soared by 15% in premarket trading on December 13, 2024, following its optimistic revenue forecast. This has had a cascading effect, lifting other chipmakers like Marvell Technology, Micron Technology, and Nvidia, and propelling the Nasdaq index to new heights. The tech sector's robust performance underscores the growing importance of AI innovations in shaping market dynamics.
In addition to the tech rally, macroeconomic factors are also playing a role. Steady inflation readings have strengthened expectations for a 25-basis-point rate cut from the Federal Reserve, with a significant majority of traders anticipating this move. This monetary policy outlook is further supporting the tech sector's momentum, as investors look to capitalize on growth opportunities in AI and chip stocks. The broader market, however, faces challenges, with the S&P 500 and Dow Jones Industrial Average positioned for weekly losses, highlighting the tech sector's unique position in the current economic landscape.
The AIO ETF is up 3.09% in premarket hours on Friday, December 13, reaching $25.00 as of 7:46 AM ET.