Wall Street rebounds with support of artificial intelligence and rate cutting expectations

The purchase of momentum quickly returned to the US stock market after a temporary break in the six -month increase, with investors betting that shares have more room to rise despite high valuations. Strong Risk Appetite has forced the Standard & Poor’s 500 (S&P 500) index to rise more than 35% since the lowest levels in April, approaching new historic highlights, while investors believe the bull market is still far from over. The bull market continues. The wave of rise continued, led by optimism about corporate business results and the return of the Federal Reserve to lower interest rates, in addition to renewed enthusiasm about artificial intelligence, which overshadows the warnings about a possible bubble in major technological stocks. Bezos: The boom in spending on artificial intelligence is a ‘bubble’ that will bear fruit. Mark Havela of UBS Global Wealth Management said: “The price-to-earnings multiples of major technology companies are still far below their levels at the peak of the Dot-com bubble, which means the bull market is still in place.” The Standard & Poor’s 500 index rose above 6.750 points, while the Nasdaq rose 100 by 1.2%, and Nvidia Corp led the increase in major technological shares after CEO Jensen Huang told CNBC that the demand for Blackwell discs was very large. Cisco System also strengthened its competition with Broadcom in the field of connecting of artificial intelligence -data centers. In terms of 10-year treasury yields, it stabilized at 4.13%, while an auction of the government bond worth $ 39 billion was expected. The dollar index has risen to its highest level since July, while the price of gold was over $ 4,000 an ounce. An ounce of gold exceeds the level of $ 4,000 for the first time, and amid limited economic data as a result of government closing, investors focused on the minutes of the recent Federal Reserve, which showed the willingness to lower the interest rates of this year, despite continuing warning. Expectations of a rate cut support the stock market. Luis Alvarado of the Wells Fargo Investment Institute said the Fed no longer follows a predetermined road, and that it has become more dependent on data than ever before, especially because officials want to reconcile conflicting goals, adding: “We still expect two cuts.” Two additional points with a quarter point this year, and two more next year. “Jeff Roach of LPL Financial said that rates were the most important topic in discussions at the last Fed meeting, adding that” futures markets could be more accurate than the updated forecasts of the Fed, especially if inflation in 2026 still drops. ” dominated, Mark Hackett of Nationwide noted that the markets remained strikingly calm, as investors are still waiting for a new stimulus in light of the lack of economic data, which pointed out that the S&P 500 index did not see a movement of at least 1%. Period, according to the data of stock traders Germany dating from 1950. The third anniversary of the current Bull market, given the future: Sunday will be the third commemoration of the current Bull market, with the S&P 500 index, near the period of the Hackett period. added that ‘fundamental factors have recently added more enthusiasm’, suggesting that the acceleration of economic growth and profit growth, along with the anticipation of additional financial and financial support. $ 16 trillion in the value of the S&P 500 index since the lowest levels in April. It is very encouraging. A little pain is good for the soul. “The bubble controversy and the possibilities of a correction. Diversify their portfolios to avoid risks as a result of the now extent of the rise in US equities, and the intensification of competition in the artificial intelligence sector. Market -driven by artificial intelligence and economic tail wind, there are increasing signs of varying momentum, which require carefully monitoring, according to Craig Johnson of Paper Sander. a large scale. “Market concentration and comparisons with internet bubble Jill Carey Hall of America noted that the bank’s customers were net sellers of US shares for the fourth week in succession, with outflow of shares and the study of the abdominal financial participants, which according to the LPL financial part of the Buchbinder. which is slightly less than the current weight of about 35%.