Nvidia Earnings Boost Markets Despite Rate Worries, Strategist Sees AI Driving Continued Tech Rally
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Nvidia's strong earnings results boosted market indices like the S&P 500 and Dow, overshadowing concerns about the Federal Reserve and interest rates.
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Chief Investment Strategist Mary Ann Bartels believes the growth and valuations of companies like Nvidia are justified, expecting PE multiples to continue expanding into 2029-2030.
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Bartels thinks the backdrop created by the Fed supports economic growth and earnings, more important for markets than rate cuts.
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The rally remains concentrated in tech, though Bartels sees some broadening in consumer discretionary and industrials related to housing and infrastructure.
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Bartels compares the evolution of AI to the productivity boost from computers and the Internet in the 1990s, believing valuations can stay high early in this type of cycle.