Posted 2/25/2024, 5:01:00 PM
AI Optimism Battles Economic Concerns as Nvidia Earnings Boost Tech
- Investors are debating whether to focus on AI's potential or worries about inflation and interest rates
- Nvidia's earnings beat fueled optimism about AI, but inflation data could bring volatility back
- Markets have priced in fewer Fed rate cuts in 2023 as data stays hot
- The stock rally has been very narrow, led by big tech and AI names like Nvidia
- It's unclear if AI's benefits will broadly lift profits; productivity gains could also spur more Fed hikes