CNBC Investing Club Upgrades Price Targets for Microsoft and Salesforce Amid AI Concerns Easing
Stocks are rallying on Thursday, with the S&P 500 poised for its best session since early August. The market is reacting to falling Treasury yields after Federal Reserve Governor Christopher Waller expressed support for maintaining interest rates until inflation data provides clarity. Enterprise software stocks have seen a strong rebound due in part to reduced fears of AI disruption and the unwinding of short bets against them. Microsoft and Salesforce are among the top performers, with Microsoft up 25% since its July earnings report and Salesforce rising nearly 30%. The CNBC Investing Club has raised their price targets for both stocks—Microsoft from $500 to $550 and Salesforce from $250 to $290. Both companies are benefiting from renewed investor confidence, with Microsoft gaining traction in AI tools like the M365 Copilot and Salesforce preparing a major product showcase at its Dreamforce conference. The market is also watching for key economic data including next week’s PPI/CPI reports and Friday's jobs report, which could influence Fed policy decisions. The upcoming earnings from Docusign, Zscaler, and Lululemon may provide further direction.
Topics: AI stocks Federal Reserve interest rates S&P 500 Treasury yields