The AI trade is fueling the market to record highs despite Iran war
Since the March 30 bottom, the iShares Semiconductor ETF (SOXX) has surged more than 30%. "Magnificent Seven" components, including Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOG, GOOGL), Meta (META), and Tesla (TSLA), are all up by double-digit percentages. Even the once-battered iShares Expanded Tech-Software Sector ETF (IGV) also rose.
Oil prices have remained volatile since the start of the war. But the tech sector's high margin gives it enough financial cushion to absorb higher commodity costs tied to chip and server production for data centers. This extends to Asian economies reliant on Middle Eastern energy imports.
Since the March 30 bottom, the iShares Semiconductor ETF (SOXX) has surged more than 30%. "Magnificent Seven" components, including Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOG, GOOGL), Meta (META), and Tesla (TSLA), are all up by double-digit percentages. Even the once-battered iShares Expanded Tech-Software Sector ETF (IGV) also rose.
Oil prices have remained volatile since the start of the war. But the tech sector's high margin gives it enough financial cushion to absorb higher commodity costs tied to chip and server production for data centers. This extends to Asian economies reliant on Middle Eastern energy imports.
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