2023-08-24 14:57:01
Expectations of the continuation of the companies’ rally related to artificial intelligence
Dubai – Al Arabiya.net
Posted on: August 24, 2023: 05:39 PM GST Last updated: August 24, 2023: 06:57 PM GST
Wael Ziada, CEO of Zilla Capital, said that the performance of companies related to artificial intelligence during the next year will be different in the coming months or years as well from the rest of the markets.
Ziadeh said in an interview with Al-Arabiya TV that the rest of the markets are still very weak, with only stocks around the world worth about $3 trillion since the beginning of this month.
The US S&P 500, the Chinese CSI 300 and the European Stoxx 600 lost about $2.8 trillion as of August 21, and the total losses of these indices were estimated at about 5% of their total value in 3 weeks, according to Refinitiv data, according to the Financial Times – FT.
The declines come amid expectations that US interest rates will remain high for a longer period and concerns about a slowdown in the Chinese economy.
He added, “The month of August was one of the worst months for the stock market, but when we look at Nvidia’s stock, we see that the situation is different, and the artificial intelligence stock rally will continue and will be different from the rest of the market during the next 12 months.”
With regard to the future of the US economy, Ziadeh indicated that the Federal Reserve has so far been able to curb inflation rather than control it. “To get it under control we would have to see a downturn in the real economy, which hasn’t happened yet.
He expected that a decline in the US economy would occur in the last period, which would be reflected in the results and profits of companies. This is a fact that has not yet been reflected in the stock market.”
Among the most prominent things that the markets are currently looking forward to are the statements of Federal Reserve Chairman Jerome Powell, tomorrow, Friday, during the annual meeting of the Federal Reserve in Jackson Hole, Wyoming, which will be held from August 24 to 26.
Markets are scrambling to see if interest rates will remain high for longer.
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