Generative AI Steals the Spotlight in H1 2023

 | Jul 03, 2023 07:09

Global markets have remained relatively calm over the past week even as Fed Chair Jerome Powell reiterated a hawkish stance, signaling a possibility of additional rate hikes.

However, as we conclude the end of the first half of 2023, it is interesting to note that the Nasdaq Composite has risen over 30% year-to-date, surpassing the gains of the S&P 500 and Dow Jones Industrial Average, which have surged by 14% and 2% respectively.

This outstanding performance by the Nasdaq can potentially be partly attributed to the hype surrounding generative AI, which has led to significant market value growth for companies involved in this sector, including names such as Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL).

h2 Everyone Got Into AI/h2

Evidently, AI has become the new hot topic of Wall Street and Silicon Valley. Whether or not the current hype is 100% justified, it seems obvious that the new era of AI applications is here to stay and likely.

In light of these developments, Blackrock (NYSE:BLK) is also betting big on this nascent niche and recently lauded AI-related stocks as potential drivers of returns, particularly amidst the challenging macro conditions.

h2 Bitcoin’s Correlation with Tech Stocks Hits 3-Year Low/h2

Bitcoin's correlation with tech stocks in the Nasdaq 100 has reached a three-year low following BTC's impressive performance this month. At the beginning of the year, the correlation stood above 60%, but it plummeted to as low as 3% last week.