*UKHotViewsExtra* Inflation hiccup barely registers as tech stocks top their 2021 peak

2024 has started in the same vein as 2023 concluded for tech stocks. February ended with the tech-focused NASDAQ up 6.1% month-on-month (MoM) and recording its highest close, as investors keep the faith with the AI investment boom. This is despite US inflation data, released mid-month, which was higher than expected and caused a wobble - before markets surged again.

And it is belief in the future benefits of artificial intelligence which is the foundation of this market resilience, as investors continue to back the so-called Magnificent Seven (Microsoft, Apple, Nvidia, Amazon, Alphabet/Google, Meta/Facebook and Tesla) in their investment in AI.

UK tech stock prices are on the up as well, with the FTSE Software and Computer Services (SCS) index rising 2.1% since the start of the year, outstripping the flatlining FTSE 100 and FTSE 250.

But is the boom in tech on both sides of the Atlantic built on solid ground? Or will investors be disappointed by challenges in monetising AI?

Research subscribers and UKHotViews Premium readers can read more in Inflation hiccup barely registers as tech stocks top their 2021 peak.

If you would like to discuss subscription options, please contact Deb Seth.

Posted by Tania Wilson at '07:55' - Tagged: markets   macro