Overnight outboard: The Dow rose for seven consecutive days and continued to hit a record high;The three major U.S. stock indexes all recorded seven consecutive weekly gains.
The Dow Jones index broke through the 37,000-point mark for the first time on Wednesday, followed by two consecutive trading days on Thursday and Friday.
Investors' enthusiasm for artificial intelligence (AI) has outweighed concerns about the impact of high interest rates from central banks, making the Big Seven synonymous with this bull market, pushing the tech-heavy Nasdaq 100 on track for its best year in more than a decade. The Nasdaq 100 is up 51% this year, and the last time it reached 50% was in 2009.
It should be pointed out that at the beginning of the year, the concept of the "Big Seven" did not appear, and in the middle of the year, because the wave of artificial intelligence caused by the chatbot ChatGPT became more and more popular, Nvidia, which provides the basis of computing power, was pushed to the top of the global market capitalization list.
There is debate about whether Nvidia** is too expensive or too cheap, but one thing is certain: Wall Street analysts all believe that Nvidia's profits have not peaked yet, and the company expects to generate about $48 billion in profits over the next 12 months, well above the roughly $10 billion expected at the beginning of the year.
According to calculations, Nvidia contributed as much as 142%, Microsoft and Apple are around 12%, Amazon and Meta are above 8%, Google and Tesla are close to 7% and 6%, respectively.
*Investors may believe that these seven companies, with their large business scale and deep financial strength, are the most well-positioned to unlock the potential of AI, the analysis said. However, valuations on the Nasdaq-100 remain high, with constituents expected to trade at 25x P/E over the next 12 months, well above the average of 19x over the past two decades.
In addition, while the high yields on US Treasuries during the year had some short-lived impact on the Nasdaq-100 index, the overall threat for the year was not as great as many thought. Especially since November, the Federal Reserve has shown signs of ending its interest rate hikes, and after the US Treasury yields have fallen significantly, the Nasdaq 100 index has refreshed new highs for the year and in history as if it was freed from the shackles.