Wall Street's Rollercoaster Ride: AI Boom, Fed Minutes, and ETF Surges
Key Ideas
- Wall Street experienced volatility last week due to contrasting factors like AI-driven gains and Fed concerns.
- Interest rate worries triggered a 600-point drop in the Dow Jones, but the market attempted to recover on Friday.
- Renewed investor interest in higher-risk assets like hydrogen companies led to significant gains in related ETFs.
- The approval of ether ETFs by the SEC signals a shift towards a more favorable regulatory environment for digital assets.
Last week, Wall Street went through a rollercoaster ride with the NVIDIA earnings-led AI boom boosting the market initially but facing challenges from hawkish Fed minutes later. The Dow Jones plunged 600 points on Thursday, its most significant drop in over a year, driven by concerns over interest rates. However, Friday saw an attempt at recovery. Amid the market turmoil, the S&P 500 slightly rose, the Dow Jones fell, and the Nasdaq advanced. Strong U.S. business data prompted a reassessment of the Fed's rate trajectory, leading to a more divided outlook among traders. NVIDIA's impressive performance and the upcoming stock split drove its shares up. ETFs related to Ethereum and solar energy surged following regulatory approvals and positive growth prospects. Notably, the approval of ether ETFs by the SEC represents a significant shift in the regulator's stance on cryptocurrencies. Investors' renewed interest in hydrogen companies resulted in solid gains, supported by financial backing and the potential for carbon emission reductions globally.