The Nasdaq Composite struck its seventh consecutive record high close yesterday, once again piggybacking off optimism in the AI sector. Never far from the headlines, Nvidia (NVDA) climbed 3.5% yesterday, earning itself a market cap of $3.33 trillion, making it the world’s most valuable company, dethroning Microsoft (MSFT) and Apple (AAPL). The jostling for position will no doubt continue, but the idea of the chipmaker even standing shoulder to shoulder with such giants would have seemed absurd just a few short years ago. Nvidia now controls about 80-90% of the market for AI chips.
The S&P 500 and DJI also started the week on strong footing, with consecutive closes in the black over the past two sessions. The moves manifested despite poor retail sales data published yesterday, the year-on-year figure dropping to 2.3% versus expectations of 2.8%. US markets are closed today due to a public holiday, so expect markets to be at the mercy of lower liquidity later on in the day.
Sabre-rattling in both the Middle East and in Eastern Europe has contributed to a rise in oil prices early this week, despite an unexpected build in US crude inventories. Brent crude is now up to $85 a barrel, WTI $81. Gold seemed content to remain range bound for the time being, currently hovering around $2,330 an ounce.
Very little on the economic calendar today, but currency traders will need to pay attention to both the Swiss National Bank and the Bank of England’s interest rate decision tomorrow, both predicted to stick to their current respective rates of 1.5% and 5.25%.
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