U.S. stock markets finished strongly again yesterday, with gains driven by ongoing optimism in technology and AI sectors, but with some regional consolidation and hesitation after recent all-time highs in major indices. Nvidia’s $100B investment in OpenAI and partnerships for AI infrastructure are fuelling optimism, with Intel up 23% recently on government stakes and collaborations. Megacaps like Nvidia carry heavy S&P 500 weight, there is an AI mania at the moment similar to the dotcom mania in 2000, in this environment it is really challenging to tell when the S&P will top.
I remember in 1999, many analysts were calling the top, they were not wrong but the market continued to rally for another year before it turned down. Today after the close Micron will release its earnings report, this is another AI stock, the S&P could get another boost tonight.