AI boom drives global stock markets to best first quarter in 5 years

The global stock market posted an excellent first quarter, with the MSCI index of world shares rising 7,7%, its best performance in five years. Optimism about the US economy and enthusiasm about artificial intelligence were the main drivers of growth, according to analysis by the British newspaper Financial Times.

US economy boosts optimism:

• The resilience of the American economy, even with unexpected inflation in January and February, fueled investor optimism.
• The S&P 500 reached a record close on 22 occasions during the quarter, demonstrating market confidence.

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Artificial Intelligence Drives Growth:

• Companies like Nvidia, a leader in chip design, have driven the market with an increase of more than $1 trillion in market value.
• Enthusiasm about AI and its applications in various sectors has contributed to the stock rally.

Rally spreads beyond technology:

• The technology sector's initial momentum has expanded to other sectors, with Europe and Japan outperforming the US.
• Japan stood out with a 16,2% rise in the Topix, driven by confidence in the economy and chip-related stocks.

Risk appetite increases:

• Despite rising government bond yields, stock index gains persisted, indicating investors' willingness to take on more risk.

Concerns

• Analysts warn of comparisons with the internet bubble of 2000, while others believe that the bull market that began in 2013 could still last.
• A sudden increase in US unemployment or a recession could negatively affect the market.

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