US stock markets rose on Monday, with the Nasdaq leading the way, buoyed by optimism around advances in artificial intelligence (AI), driven particularly by Nvidia.
The S&P 500 index posted a solid gain of about 0.8%, while the tech-heavy Nasdaq Composite rose more than 1%, outperforming other indexes. The Dow Jones Industrial Average also saw a modest 0.2% rebound, recovering from losses experienced on Friday.
In recent weeks, market sentiment has been influenced by concerns about higher-than-expected inflation and uncertainty surrounding Federal Reserve policies. However, investors are now anxiously awaiting the outcome of the Federal Reserve’s March meeting, which begins on Tuesday, to assess whether the central bank still plans to implement three rate cuts in 2024. Expectations are leaning towards the Fed keeping rates at their current 23-year high during its decision on Wednesday.
Technology stocks saw notable gains, fueled by excitement around Nvidia’s annual conference, which focuses on advances in AI. Additionally, Alphabet shares rose following reports suggesting that Apple is considering integrating Google’s Gemini AI engine into its upcoming iPhone models.
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However, trading on the Nasdaq was disrupted early Monday due to technical issues affecting connectivity and order matching.
Investor attention also extends to Reddit’s highly anticipated IPO on Thursday, symbolized by the symbol “RDDT.” Reports indicate that the IPO is oversubscribed, indicating possible renewed interest in the new issues market.
In global markets, investors are closely watching the Bank of Japan’s decision, scheduled for Tuesday, amid speculation that the central bank could abandon its negative rate policy and opt for a rate hike. This speculation contributed to a 2% rise in Japan’s Nikkei index.
Stay tuned for more live updates on market developments throughout the day.