Analysts spotted a positive trend in artificial intelligence recognition. Experts reckon that the optimistic investors' sentiment about AI is benign for the global high-tech sector. Analysts at Business Insider predict that the Nasdaq index could skyrocket twice in 2-3 years amid AI acceptance in the global high-tech industry.
No wonder, high-tech stocks perked up in light of such news! However, there is a fly in the ointment. Experts cautioned that investors might be wrong in their forecasts. Analysts warn investors against over-high expectations of a stunning rally in the Nasdaq and also fast rate cuts by the Federal Reserve.
Meanwhile, hedge fund managers at Deepwater Asset Management share the bullish outlook for high-tech stocks on the back of the AI hype. Analysts are certain about a rally in the high-tech sector that will mostly benefit the bullish trend in the stock market.
At the same time, Deepwater Asset Management urges market participants to moderate their expectations. Besides, experts advise investors to take a prudent approach to the Federal Reserve's monetary easing timeline.
The US consumer price index increased by 3.1% in January 2024 from a year ago. The reading is 0.2% stronger than the Wall Street consensus. Inflation acceleration baffled investors, so US stocks tumbled in response to the inflation data. For the time being, most experts say that the FOMC will hardly venture into the first rate cut at the policy meeting in March.
