Since the beginning of the year, the international stock index has risen by 7.7 percent, while shares on the Helsinki stock exchange have fallen in price. According to the Financial Times, this year’s stock market performance has been the best in five years. The surge in stocks has been driven by several factors, including investors’ belief that the United States will avoid a recession despite tight monetary policy and their enthusiasm for artificial intelligence.
The MSCI index, which measures the performance of shares of large and medium-sized companies in 23 countries, has increased by 7.7 percent since the beginning of the year. Meanwhile, European Stoxx Europe 600 index has risen by seven percent in the same period. However, not all industries are benefiting equally from this growth. A large part of companies listed on Helsinki Stock Exchange are in industries impacted by slow economic growth in Euro area. In contrast, U.S economy is steadily growing with a GDP growth rate of 3.4 percent at end of last year.
One standout company benefiting from the surge in artificial intelligence is Nvidia, whose stock value has risen by 88 percent at beginning of year. The company develops microprocessors essential for utilizing artificial intelligence and its market value has increased over $1 trillion dollars in first three months of year contributing significantly to overall increase share value.
Investors are less likely now to anticipate interest rate cuts by US central bank as stable economic growth coupled with optimism about artificial intelligence have driven stock market performance at start of year . The International Monetary Fund (IMF) predicts a 2
