AI boosts Nasdaq to record high following Covid-19 pandemic.

AI Optimism Driving Nasdaq to New Highs


Key Points:

  • Nasdaq hits new high on optimism over artificial intelligence (AI)
  • Investors snapping up shares in companies poised to benefit from AI growth

America’s Nasdaq index reached a new high, driven by optimism surrounding AI. The Nasdaq rose 0.9% to 16,091.92, rebounding from a slump in 2021. Investors are exuberant about the growth potential of AI and have been investing in companies like chipmaker Nvidia that are well-positioned to benefit. The Dow Jones and S&P 500 also closed at new highs, signaling investor optimism about the US economy.

Chipmaker Nvidia, with a market value briefly touching $2tn this month, was a major driver of the rally. Companies like Microsoft, AMD, and Dell, who are also poised to benefit from AI growth, saw their stocks rise. Investors are hopeful that the US central bank will soon begin lowering interest rates, making borrowing cheaper and boosting business activity.

In January, Japan’s stock index hit an all-time high, despite the country being in a recession. The optimism surrounding AI growth and potential economic recovery is driving market momentum.