Nasdaq notches first report excessive shut since 2021 on AI optimism

NEW DELHI: The Nasdaq Composite Index soared to a report excessive on February 29, 2024, marking its first peak since November 19, 2021. The index superior 144.18 factors or 0.90% to shut at 16,091.92, pushed by investor enthusiasm for synthetic intelligence, significantly impacting shares like Nvidia.Following a big downturn in December 2022, the place the Nasdaq was over 30% under its earlier report, the latest surge displays a broader market restoration.This upturn is attributed to Federal Reserve price reduce anticipations and burgeoning AI expertise pursuits.AI surge: Rick Meckler of Cherry Lane Investments famous, “The anticipation of an artificial intelligence boom has really provided support for these stocks even at extended valuations.” Nvidia has emerged because the forefront of this AI-driven market rally, dominating about 80% of the high-end AI chip market.Nvidia has seen a 60% improve in its inventory worth this yr, changing into the third most beneficial firm on Wall Avenue. Its latest monetary efficiency and important function within the AI sector have contributed to this surge.Inflation and rates of interest: A slowing headline inflation quantity may encourage the Federal Reserve to start out chopping rates of interest from their 23-year excessive sooner reasonably than later.However the carefully watched “core inflation” measure, which strips out unstable meals and power prices, elevated by 0.4 p.c from a month earlier, indicating an uptick in underlying inflation from December to January.Nevertheless, the US inventory market general has responded positively to the most recent inflation studies, with the Nasdaq setting new information.Following Wall Avenue’s lead, Japan’s Nikkei share common additionally reached a brand new all-time excessive, pushed by tech-related shares and optimistic projections relating to US rates of interest.This rally, underscored by sturdy company earnings and tech developments, highlights the rising affect of AI on monetary markets and anticipates future financial trajectories influenced by technological innovation and financial coverage changes.(With inputs from companies)

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