(CercleFinance.com) – Wall Street ended a year of vigorous gains on Tuesday on a negative note, supported in particular by the craze for certain technological heavyweights against the backdrop of the artificial intelligence (AI) revolution.
The Dow Jones thus lost less than 0.1% to 42,544, the S&P500 lost more than 0.4% to less than 5,882 and the Nasdaq Composite fell by 0.9% to 19,311 on Tuesday, but over the whole of 2024, the three indices gained 12.9%, 23.3% and 28.6% respectively.
'The rise in stocks towards the end of the year was favored by the election of Donald Trump who announced a more business-friendly policy and positive changes in taxes and regulations,' explained XTB at the end of December.
'For two years, the AI frenzy has been the main driving force behind the growth of the American market', especially highlighted this fintech, pointing to the surge in shares of technology companies such as Nvidia, Alphabet, Microsoft, Amazon and Tesla.
According to her, investors were betting that technology companies, in particular, will earn even more in the future, by investing hundreds of billions of dollars in AI infrastructure each year.
'If AI meets expectations and companies start earning even more from it, such high valuations are justified. But, if the future turns out to be more complicated, then the shares are simply expensive,' warned XTB.
