Nvidia and tech stocks drive Nasdaq 100 to record high; The solar sector is shining, meme bubbles are bursting: this week in the market

Technology stocks on the Nasdaq 100, tracked by Invesco QQQ Trust (NASDAQ:QQQ), rose to record highs during the week, posting a fifth straight week of gains – its longest winning streak since January – driven by Nvidia companyexceptional earnings report (NASDAQ:NVDA).

Shares of the artificial intelligence giant rose more than 9% after first-quarter financial results showed a 262% year-over-year sales increase, beating expectations and sparking a broad-based rally in semiconductor stocks.

Solar energy supplies monitored via Invesco Solar ETF (NYSE:TAN), had its best week since December 2023, potentially in response to the President’s comments Joe Bidenincreased tariffs on Chinese imports, including a significant increase on solar cells.

Risk sentiment deteriorated in non-tech sectors as hawkish Fed minutes and S&P Global business surveys showed renewed concerns about inflation, heightening fears of prolonged higher interest rates. The Dow fell on Thursday, suffering its worst session in more than a year.

The buzz around meme stocks has faded this week GameStop company. (NYSE:GME) is down sharply and is the worst performer among the Russell 1000 stocks.

A trillion-dollar AI market

Wedbush analyst Dan Ives predicts trillion-dollar valuations in the tech industry, fueled by the artificial intelligence revolution, following Nvidia’s stellar quarterly results. Nvidia’s data center business surged 427%, fueling a rally in the stock price. Ives compares the AI ​​boom to the Internet revolution of 1995, predicting a significant impact on the technology industry with significant investor participation and disruptive growth.

Inflation stress is growing

Retail traders are increasingly stressed about inflation and skeptical of Federal Reserve interest rate cuts, according to Charles Schwab’s sentiment survey. Bullish sentiment on U.S. stocks dropped to 46% in the second quarter, while 79% see cryptocurrencies as risky investments.

Approved Ethereum ETFs

The Securities Exchange Commission approved the first step toward discovery Ether (CRYPTO:ETH) exchange-traded funds, paving the way for increased mainstream and institutional investment in the second most valuable cryptocurrency. The approval reflects growing regulatory acceptance of cryptocurrencies, which could lead to inflows of capital from mainstream investors.

Cryptocurrencies in politics

Katie WoodPredictions that cryptocurrency will be a significant issue in the 2024 White House race are turning out to be accurate. As young voters increasingly favor cryptocurrency-supporting candidates, politicians are changing their stance.

Meme stocks are down

Interest in meme stocks like GameStop and AMC Entertainment Holdings Inc. (NYSE:AMC) fell following Roaring Kitty’s departure from social media. Investors on Reddit’s WallStreetBets forum are now focusing on shares of other companies, including Nvidia, Tesla Inc. (NASDAQ:TSLA) i Nikola company. (NASDAQ:NKLA).

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Image generated using artificial intelligence via Midjourney.