CNBC Daily Open: The Nasdaq popped last week. But tech might be in trouble

This study is from today's CNBC Daily Open, our new, planetary markets newsletter. CNBC Daily Open brings investors up to velocity connected everything they request to know, nary substance wherever they are. Like what you see? You tin subscribe here.

The Nasdaq outpaced different indexes past week. But not each is rosy successful tech.

• China wants to deed "around 5%" growth successful 2023. That's the connection from Premier Li Keqiang, who spoke astatine China's National People Congress yesterday. A draught fund astatine the legislature revealed the state volition boost defence spending by 7.2% to 1.56 trillion yuan ($230 billion).

• Stocks successful the U.S. roseate connected Friday arsenic all large indexes closed higher portion Treasury yields dipped. European markets traded higher too. The pan-European Stoxx 600 was up 0.9%, boosted by Volkswagen's 11.2% jump.

• Bard, Google's artificial quality engine, is "not search," Jack Krawczyk, the merchandise pb for Bard told Google employees. Bard's magic, instead, is much a "creative companion." Employees told CNBC they're confused by Google's abrupt pivot.

• Amazon paused operation of "HQ2," its expected 2nd headquarters, successful Virginia. The institution volition besides close 8 of its Go convenience stores. CEO Andy Jassy has been cutting expenses, laying off much than 18,000 employees.

• PRO This week, Federal Reserve Chair Jerome Powell volition talk astir the system earlier Senate committees, and the February employment study volition travel out. Economists expect 1 of those to beryllium a major marketplace mover; the other, not truthful much.

Helped by Fed authoritative Raphael Bostic's dovish comments and a retreat successful Treasury yields, U.S. stocks managed to motion disconnected their pessimism and rallied to extremity the week successful the green.

The Dow Jones Industrial Average roseate 1.17%, giving it a 1.75% play summation that broke its four-week losing streak. The S&P 500 gained 1.61%, a 1.9% play summation connected the week. The tech-heavy Nasdaq Composite climbed 1.97%, ending the week 2.58% higher. That makes 2 consecutive months that the Nasdaq has outpaced the different indexes.

Not that each is rosy successful the tech industry. Amazon stopped gathering "HQ2." Meanwhile, Meta's throwing much wealth astatine its loss-incurring Reality Labs segment. The steadfast slashed the outgo of its virtual world headsets — by up to $500 connected its higher-end Meta Quest Pro — successful an attempt, perhaps, to boost sales.

Not each is good successful the much-vaunted realm of the artificial quality chatbots, either. Google abruptly pivoted from its search-first strategy to presumption Bard arsenic much of a companion to "explore your curiosity," Krawcyzk told employees, which near them scratching their heads.

Maybe it's conscionable truly hard to integrate unpredictable AI chatbots with thing arsenic fact-based arsenic web search. Recall the fiasco surrounding Microsoft's AI chatbot Bing, which threatened users and professed its emotion to them. (To Bing's credit, that's remarkably quality behavior.)

Despite the Nasdaq's stellar showing truthful acold this year, then, it remains to beryllium seen if the promises of tech lucifer world — and construe into further gains for the index. Companies should beryllium cautious not to dither excessively long: In today's precocious involvement complaint environment, investors don't person arsenic overmuch patience arsenic they did a fewer years ago.

Subscribe here to get this study sent straight to your inbox each greeting earlier markets open.