Daily Brief - 23 Feb 2024

S&P 500, Nasdaq and Dow hit records as Nvidia signals new AI rally

All three big American stock indexes, including the S&P 500, Nasdaq 100, and Dow Jones, hit new all-time highs, thanks to Nvidia's impressive earnings. This surge reflects the growing excitement around artificial intelligence's potential to boost profits. Nvidia's success not only increased its own value massively but also lifted other tech and chipmaker stocks. Despite some recent market wobbles, overall confidence remains high, with hopes that interest rates might drop later this year. The US economy's strength and solid company earnings are keeping investors optimistic, easing fears of a recession.

Reddit is moving ahead with IPO after two years on sidelines

Reddit is making headlines with its upcoming initial public offering (IPO), aiming to test the waters for venture capital-backed tech IPOs in 2024. Despite a net loss in 2023, the social media giant is on a path of recovery, showcasing reduced losses and significant revenue growth. With a potential valuation of at least $5 billion, Reddit's IPO is eagerly awaited as a pivotal moment for US listings. This move comes after a two-year hiatus, with the company boasting millions of daily active users and becoming a central figure in the meme-stock phenomenon. As Reddit explores new growth avenues, including advertising and AI data licensing, the tech community and investors alike are watching closely, marking this as a significant event in the tech IPO landscape.

Fidelity manager dumps nearly all treasuries on growth optimism

Fidelity International's money manager, George Efstathopoulos, has made a significant shift by selling off most US Treasuries in anticipation of continued economic expansion. This decision reflects a growing confidence in the resilience of the US economy, pushing Efstathopoulos towards assets that thrive in periods of economic growth. As the US shows signs of acceleration, with lower jobless claims and potential interest rate hikes on the horizon, the move away from Treasuries highlights a broader investment strategy favoring stocks and other growth-oriented assets. This strategy marks a pivot from the traditional safe-haven appeal of Treasuries, signaling a more optimistic outlook for the global economy.