From Nasdaq: 2024-08-05 14:51:54

Recent advancements in AI have driven the market rally since generative AI was introduced last year, with concerns about the economy lingering. The combination of carry trade and a rate hike by the Bank of Japan sparked a global sell-off, leading major tech stocks like Amazon, Microsoft, Alphabet, and Meta Platforms to decline.

The market decline was triggered by a carry trade involving borrowing Japanese yen and investing in major stocks, which was impacted by a rate hike by the Bank of Japan. Additionally, news of Nvidia possibly delaying the release of an AI processor further fueled the sell-off, causing markets worldwide to plummet.

Despite the market turmoil, the future looks bright for AI investing, with estimates suggesting the generative AI market could be worth between $2.6 trillion and $4.4 trillion annually. Industry giants like Nvidia, Amazon, Microsoft, Alphabet, and Meta Platforms are poised to capitalize on this growth, making them attractive long-term investments despite recent market fluctuations.



Read more at Nasdaq: Why Amazon, Microsoft, Meta Platforms, and Other “Magnificent Seven” Stocks Got Caught Up in a Sell-Off on Monday