The US economy’s stability and growth, coupled with investors’ optimism in artificial intelligence, have driven the international stock index to rise by 7.7 percent at the beginning of the year. In contrast, shares on the Helsinki stock exchange fell in price, with the general index decreasing by over four percent this year. The MSCI index, which measures large and medium-sized companies in 23 countries, has increased by 7.7 percent since January-March 2019, while the European Stoxx Europe 600 index has risen by seven percent in the same period.
One standout company benefiting from this surge is Nvidia, whose stock value has risen by 88 percent at the beginning of the year. Nvidia develops microprocessors that are essential for utilizing artificial intelligence, and its market value has increased by over 1,000 billion dollars in the first three months of the year. This growth has contributed significantly to the overall increase in share value.
Meanwhile, slow economic growth in industries impacted by slow economic growth in the euro area has led to a decrease in share prices on Helsinki Stock Exchange companies listed there. Despite tight monetary policy and investor enthusiasm for artificial intelligence, concerns about a recession have been dampening sentiment on Wall Street.
The International Monetary Fund (IMF) predicts a 2.1 percent growth rate for the US economy this year and estimates that it will grow by 1.7 percent next year. In contrast, Eurozone’s estimated growth rate for this year is only 0.9%, and it is projected to be at 1.7% next year as well. Investors are less likely now to anticipate interest rate cuts by US central bank due to stable economic growth rates.
Overall, while stocks rose on many exchanges around the world early this year, global economic factors such as slowing growth in Europe and uncertainty about trade issues have had an impact on some regions more than others.
In conclusion, despite concerns about a recession and tight monetary policy conditions globally, investor confidence continues to drive up stock prices worldwide due to optimism about artificial intelligence’s potential future applications across various industries.
