Briefing.com analyst Patrick O’Hare noted Powell’s comments that stock valuations are high were not revelatory given that analysts had been talking about the situation for some time.<\/p>\n
“Yes, stocks are ‘fairly highly valued’, yet the tale of the tape is that the market thinks ‘maybe not’ given the AI boom, the pivot to lower policy rates, and stimulative tax policies,” he said.<\/p>\n
“Its hopeful view remains supported by the absence of a disillusioning fundamental catalyst,” he added.<\/p>\n
Alibaba CEO Eddie Wu’s unveiling of plans to ramp up AI spending by about $53 billion provided a positive catalyst for tech stocks as well as the Hong Kong and Shanghai stock markets.<\/p>\n
Alibaba shares surged more than nine percent.<\/p>\n
“The industry’s development speed far exceeded what we expected, and the industry’s demand for AI infrastructure also far exceeded our anticipation,” Wu told an audience at the firm’s annual developer conference in Hangzhou, China.<\/p>\n
Trade Nation’s Morrison pointed out that US chipmaker Micron Technology issued positive forward guidance along with strong sales and earnings figures.<\/p>\n
“The news helped dispel fears over excessive AI spending, and that has fed through to a recovery in the US majors this morning,” he said.<\/p>\n
US tech giants traded mixed as the day’s business got underway, with artificial intelligence chipmaker Nvidia and Amazon rising, while shares in Google-parent Alphabet and Microsoft dipped.<\/p>\n
Crude prices firmed Wednesday “after (US President) Donald Trump ramped up further pressure on sanctions on Russian oil”, noted Kathleen Brooks, research director at XTB.<\/p>\n","protected":false},"excerpt":{"rendered":"Briefing.com analyst Patrick O’Hare noted Powell’s comments that stock valuations are high were not revelatory given that analysts…\n","protected":false},"author":2,"featured_media":40866,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[138,8679,5548,220,111,139,69],"class_list":["post-40865","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-equity-markets","tag-jerome-powell","tag-markets","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/40865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=40865"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/40865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/40866"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=40865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=40865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=40865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}