The artificial intelligence boom is still going on

Yesterday's report on the results of the main representative of the artificial intelligence industry (Nvidia) exceeded estimates. Shares rose over 9% in after-hours trading. eliminating this week's declines. Investors could also read the minutes from the last FOMC meeting, which show that officials are in no hurry to cut interest rates.

The EUR/USD rate is equal to the highs set on Tuesday this morning. Wall Street showed a rebound at the end of the session. Dow Jones indexes and SP500 closed with a slight gain (0,13%) and the Nasdaq Composite ultimately lost 0,32%.

Risk for the economy

In the minutes of the meeting FOMC on January 30-31, most officials noted the risk of easing the monetary policy stance too quickly and stressed the importance of carefully assessing incoming data to determine whether inflation is sustainably falling to 2 percent. Also indicated at risk of halting progress towards price stability. There were also some dissenting voices that supported earlier easing of monetary conditions. The risk for the economy resulting from waiting too long for a reduction in interest rates was pointed out. Fed officials suggested that it would be appropriate to begin discussions about slowing the pace of balance sheet reduction at the next meeting.

At the end of the day, EUR/USD was around 1,0820 and this morning growth continues. The quotes are currently near Tuesday's peak at 1,0835. Yields of 2-year US bonds were gaining yesterday in the afternoon and are currently around 4,65%.

AI boom

The second event of the day that slightly dominated the market's attention were the quarterly results of Nvidia - a representative of the artificial intelligence industry. Results were again above Wall Street expectations. The company posted sales of $22,1 billion in the three-month period ended last month, up 265%. higher than in the same quarter a year earlier and well above average analyst estimates at the level of USD 20,4 billion. The company's fourth-quarter net income of $12,3 billion resulted in a stunning year-over-year profit increase of 769%, and adjusted earnings per share of $5,16 beat estimates of $4,59.

This is the third quarter in a row of above-average results. The company also said it expects revenue of $24 billion in the current quarter (forecasts showed $22.2 billion). First of all, the increase by 409% is noteworthy. ($18,4 billion) in sales in the Datacenter division dealing with artificial intelligence. The company's shares increased by over 9% in after-hours trading, which offset the declines in quotations in recent days, mainly on Tuesday.

Source: Łukasz Zembik, OANDA TMS Brokers