In the final week of February, Wall Street will strive to maintain its AI-fueled rally even as economic concerns linger and the Federal Reserve’s favorite inflation measure is on deck. Stocks are headed for a winning week, aided by Nvidia’s blockbuster earnings results. The S & P 500 leapt to a fresh record high, while the Dow Jones Industrial Average powered through the 39,000 threshold for the first time ever. The Nasdaq Composite is on the brink of its own all-time closing high. Each of the major averages are tracking for weekly gains exceeding 1%. Nvidia, which Goldman Sachs called “the most important stock on planet earth,” added 8% to its considerable advance this week, jumping 16% on Thursday alone following its earnings beat. The chip company is now higher this year by more than 60%. .SPX ALL mountain S & P 500 For investors, this week confirms the tech momentum driving markets for the better part of the last year is justified, and many expect it can continue for a while longer. But many worry the writing is on the wall for these market leaders as economic and inflation risks linger. “It’d be awfully hard to bet against the sort of AI craze in the short term,” said Patrick McDonough, portfolio manager at PGIM Quantitative Solutions. “The flip side to that, or maybe the one single cloud that’s out in our perfect sunny day, would be the stickiness of inflation, and what that impact is.” ‘The party is not going to end anytime soon’ U.S. equities were not the only ones rallying on the back of Nvidia this week. In fact, markets around the world notched record highs, with Japan’s Nikkei 225 hitting an all-time high Thursday for the first time since 1989. Europe’s Stoxx 600 also reached record levels . What’s more, the rally broadened out to more parts of the market besides the mega-caps and semiconductors. All 11 S & P 500 sectors are set to close out a positive week, including this year’s underperformers real estate and utilities. But many investors say…
2024-02-23 13:04:00
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