Tech stocks in the Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), had a strong week, reaching record highs for the fifth consecutive week. This streak, the longest since January, was fueled by Nvidia Corp.’s (NASDAQ:NVDA) impressive earnings report. Nvidia saw a 9% surge in its stock following a 262% year-over-year increase in sales in the first quarter.
The solar sector, monitored through the Invesco Solar ETF (NYSE:TAN), also performed well, experiencing its best week since December 2023. This may be attributed to President Joe Biden’s increased tariffs on Chinese imports, particularly on solar cells.
However, risk sentiment weakened in non-tech sectors due to hawkish Fed meeting minutes and concerns about inflation, leading to fears of higher interest rates. The Dow Jones fell on Thursday, recording its worst session in over a year.
The hype around meme stocks like GameStop Corp. (NYSE:GME) dwindled this week, with GameStop seeing a significant decline and becoming the worst-performing among Russell 1000 stocks.
Analyst Dan Ives from Wedbush predicts trillion-dollar valuations in the tech sector driven by the AI revolution, inspired by Nvidia’s strong quarterly results. Ives sees similarities between the AI boom and the internet revolution of 1995, expecting transformative growth and significant investor participation.
There is growing concern about inflation among retail traders, with skepticism about Federal Reserve rate cuts. A Charles Schwab sentiment survey showed a decrease in bullish sentiment on U.S. stocks and a view that cryptocurrencies are risky investments.
The Security Exchange Commission’s approval of the first step towards Ethereum exchange-traded funds signals increasing mainstream and institutional investment in the cryptocurrency. This reflects a broader acceptance of cryptocurrencies by regulators, potentially attracting more capital from mainstream investors.
Cryptocurrency is becoming a significant issue in politics, as predicted by Cathie Wood. With young voters favoring candidates supporting crypto, politicians are adjusting their stances.
Interest in meme stocks has declined, with investors on platforms like Reddit’s WallStreetBets shifting their focus to other stocks such as Nvidia, Tesla Inc. (NASDAQ:TSLA), and Nikola Corp. (NASDAQ:NKLA).