AI-stock rally powers Nasdaq to record close
Demand for compute is strong enough that hyperscalers remain undeterred by higher borrowing costs, posing a dilemma for the US Federal Reserve.
The Nasdaq closed at a record high on Monday, driven by gains in tech stocks, particularly Nvidia and Microsoft. According to RTHK News - Finance, Nvidia climbed 2.1 percent and reached a record-high close, boosting its stock market value to US$5.76 trillion. Microsoft added 1.5 percent, while Meta Platforms and Tesla gained about 2 percent each.
The S&P 500 also rose and was about 0.3 percent below its August 13 record high close. Weaker-than-expected US jobs data on Friday led investors to rule out a Federal Reserve interest rate hike this month, as reported by Free Malaysia Today.
Investors are now looking ahead to quarterly earnings reports, with third-quarter earnings season set to kick off next week with reports from large US banks. According to Art Hogan, chief market strategist at B Riley Wealth, investors are focusing on lower energy prices, as oil prices slipped after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies. Analysts expect S&P 500 earnings to jump over 30 percent year over year, largely due to AI-related stocks, as per LSEG data.
Brief written by urgent.news from Semafor, RTHK News - Finance, Free Malaysia Today, The Business Times - Companies & Markets, Straits Times Business — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.
