Nasdaq (QQQ) continued to have a good year. In mid-week trading, the index closed at an all-time high. AI stocks rallied, further widening the K-shaped economy.
Monolithic Power (MPWR) gained 8.06% to close at $1,380.62. AI servers require more power on the electrical grid. SanDisk (SNDK) gained 6.82% as it traded closer to the $2,000 level (at $1,887.04).
Gen Digital (GEN), GoDaddy (GDDY), and Royal Caribbean (RCL) shares fell in the 6% range. Known previously as Symantec, investors did not want to hold the antivirus software stock. Even though oil prices fell, cruise line stocks slumped. Carnival (CCL) hovered near a 52-week low, while Norwegian Cruise Line (NCLH) traded at a 52-week low.
Inflation, led by record-high diesel prices, will continue to hurt everyday consumers. Investors are pricing in a slowdown in companies sensitive to a drop in consumption. By contrast, tech stocks like Micron Technology (MU) added 5%. Seagate (STX) and Western Digital (WDC) also rose.
Bank stocks like Wells Fargo (WFC) and BofA (BAC) fell alongside Visa (V) and Mastercard (MA).
Expect Nasdaq to hold its current levels. Anthropic will list its shares through an IPO this year. Next year, OpenAI, despite burning through billions through 2030, will IPO. Venture capital money will continue to support AI investments.
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