From “NASDAQ”: 2024-03-28 17:09:22

The U.S. stock market is experiencing a strong start in 2024 due to optimism over the economy, interest rate cuts, and excitement about artificial intelligence. The S&P 500 has surged over 10% this year, hitting record highs. The Nasdaq Composite also saw its first record high since November 2021. A dovish Federal Reserve meeting and broadening market confidence have supported these gains.

Investors are confident in a “soft landing” for the economy, with fund managers projecting positive outcomes. The rise in Treasury yields has not dampened stock performance, with the 10-year Treasury yield around 4.2%. Stock valuations have increased, with the S&P 500’s forward P/E ratio at its highest level in over two years.

Megacap companies like Nvidia and Meta Platforms continue to lead the market, with Nvidia surging over 80% and Meta jumping 37% this year. However, other megacaps like Apple and Tesla have faced challenges, with Apple shares slipping 11% and Tesla tumbling 29%. The overall strength of smaller companies indicates a broader rally in the market.

Investors are looking at opportunities beyond Big Tech in sectors like tech and communication services. Energy, financials, and industrials are also outperforming the S&P 500. Companies that stand to benefit from increased use of AI, like Nvidia, Super Micro Computer, and Arm Holdings, are seeing significant gains. The AI fervor is evident in the market, with shares of Astera Labs doubling from its IPO price in just one week.



Read more at “NASDAQ”: GRAPHIC-How the US stock market rocketed through the first quarter