The AI Frenzy on Wall Street

Wall Street closed positively as the AI frenzy continues spearheaded by Nvidia. This is despite deteriorating
expectations that the Federal Reserve will lower interest rates soon.

As such, the DJIA added 4 points while the Nasdaq surged by 185 points to end on a record high as the US 10 year yield eased to 4.467%. In Hong Kong, the HSI declined further as outlook on lower US interest rates wanes coupled with the absence of earnings surprises.

The AI frenzy

The HSI lost almost 1,000 points over the last 5 days. The FBM KLCI ended the week negatively at
just above the 1,620 threshold seemingly a strong support level as selling continues amid a weak regional
performance.

“Nonetheless, we believe some bargain hunting activities to take place today spurred by decent
corporate earnings reported thus far.

“We noticed except for the Planters, most sectors had reported an encouraging set of earnings for 1Q24. Therefore, we expect the index to hover between the 1,615-1,625 range today,” Rakuten says.