Update Equities: New highs for tech stocks
November US inflation data showed a 0.3% rise, which was widely expected. As such, stock markets paid more attention this week to IT sector developments, as the technology-driven Nasdaq composite index topped 20,000 points for the first time.
In China, stocks had a strong start to the week, based on local leaders suggesting that a proactive fiscal stance and supportive monetary policies to stimulate the economy lay ahead in 2025. But the initial enthusiasm faded given that the annual Chinese central economic work conference is responsible for potential support measures. Policymakers also have the option to stimulate exports by weakening the Chinese yuan against the US dollar.
Chinese authorities also attracted headlines with the announcement of a probe into the US chip leader Nvidia. The probe is related to the possible breaking of anti-monopoly rules in 2020. Nvidia has been one of the key beneficiaries of the artificial-intelligence (AI) boom. Throughout 2024, AI has been one of the key trends supporting equity markets.
Software company Oracle dropped, after reporting lukewarm quarterly revenues. Chair Larry Ellison, however, stressed that demand for powerful tools to handle AI workload is benefitting Oracle products. Also in the tech sector, Broadcom was helped by reports that Apple is working with it on a server chip aimed at AI applications. Looking forward to future developments, Alphabet’s announcement of the high performance of Google’s Quantum AI “Willow” chip could make the company a pioneer in innovative quantum computing systems. Google claims to be able to combine extreme speed with improved stability, which has been the key issue in the development of quantum computing.
Bart Taillaert
