The U.S. Stock Market Maintains Strong Performance, Setting Record Highs

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The U.S. stock market continues to perform strongly, with the New York Stock Exchange setting record highs. The Dow Jones Industrial Average has been rising daily, surpassing the 39,000-dollar mark for the first time and garnering the trust of investors. Notably, stocks of major players like McDonald’s in the foodservice industry and Nike in the sports equipment sector have seen increases, symbolizing the overall strength of the market.

Behind this robust performance lies the influence of the Federal Reserve’s (FRB) monetary policy. Concerns about monetary tightening have eased, leading to a decline in long-term U.S. interest rates. The alleviation of interest rate burdens has propelled corporate performance, particularly benefiting companies like McDonald’s and Nike. The changes in the FRB’s monetary policy have had a positive impact on the market, stabilizing investor sentiment.

Furthermore, there are high expectations for the growth of businesses related to artificial intelligence (AI). Following the strong earnings of U.S. semiconductor giant Nvidia, there is increased anticipation for the growth of businesses related to generative AI. The demand for companies and services utilizing AI technology has increased, driving up the stock prices of related companies. This growth is propelling the market forward, increasing investor interest.

However, in the Nasdaq market, pressure is being exerted on certain stocks. The Nasdaq Composite Index, which includes many IT companies, is experiencing downward pressure on select technology-related stocks, potentially affecting the overall market. There is uncertainty surrounding the direction of the Nasdaq market, prompting investors to exercise caution.

The impact of these trends on Japanese stocks is also being closely monitored. With the continued strong performance of the U.S. stock market, there are expectations for its ripple effects on the Japanese stock market, leading to heightened investor attention. In the Tokyo market, the Nikkei Stock Average has reached its highest level in about 34 years, indicating a high likelihood of interconnected movements between the two markets.

Conclusion

Overall, the U.S. stock market maintains strong performance, buoyed by the effects of the FRB’s monetary policy and the growth expectations for businesses related to AI. However, uncertainties such as the downward pressure on certain Nasdaq stocks and the impact on Japanese stocks exist. Investors should monitor market trends closely and prioritize risk management.