Nasdaq 100 tech stocks Invesco QQQ Trust (NASDAQ:QQQ) surged to a record high this week, snapping a five-week winning streak, its longest streak since January. NVIDIA Corporation(NASDAQ:NVDA)'s unusually strong earnings report.
Shares in the artificial intelligence giant surged more than 9% after it reported first-quarter results that showed revenue up 262% from a year ago, beating expectations and sparking a broader rally in semiconductor stocks.
Solar power inventory is Invesco Solar ETF (NYSE:TAN) had its best week since December 2023, likely due to the President's reaction. Joe BidenRaising tariffs on imports from China, including a significant price hike on solar cells.
Risk sentiment in non-tech sectors weakened after hawkish Fed minutes and an S&P Global survey of companies showed renewed inflation fears and raised concerns about longer-term higher interest rates. The Dow Jones Industrial Average fell on Thursday, its first drop in more than a year.
This week, the meme stock frenzy faded. GameStop Corporation (NYSE:GME) plummeted, making it the worst-performing stock in the Russell 1000.
The Trillion Dollar AI Market
Wedbush Analyst Dan Ives Ives predicts that the AI revolution will drive the tech industry to $1 trillion in market capitalization after NVIDIA posted a strong quarterly earnings report. NVIDIA's data center business grew 427%, helping drive the stock price higher. Ives likened the AI boom to the 1995 Internet revolution and predicts it will have a major impact on the tech industry with significant investor participation and transformative growth.
Inflationary stress rises
According to a Charles Schwab sentiment survey, retail investors are increasingly stressed about inflation and skeptical of the Federal Reserve cutting interest rates, bullish sentiment towards U.S. stocks fell to 46% in the second quarter, and 79% view cryptocurrencies as a risky investment.
Ethereum ETF Approved
Securities and Exchange Commission approves first step on the road to Spot Ethereum (CRYPTO: ETH) The approval of an exchange-traded fund paves the way for increased mainstream and institutional investment in the second most valuable cryptocurrency. The approval reflects greater regulatory acceptance of cryptocurrencies, which could lead to capital inflows from mainstream investors.
Cryptocurrencies in politics
Cathie WoodPredictions that cryptocurrency will be a key issue in the 2024 presidential election are proving to be accurate, as politicians are adjusting their positions as support for pro-crypto candidates grows among younger voters.
Meme stocks fall
GameStop and AMC Entertainment Holdings Co., Ltd. (NYSE:AMC) shares have fallen following Roaring Kitty's departure from the social media platform, and investors on Reddit's Wall Street Bets forum are now turning their attention to other stocks, including Nvidia. Tesla Co., Ltd. (NASDAQ:TSLA) and Nikola Co., Ltd. (NASDAQ:NKLA).
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