global stock markets powered by artificial intelligence

The financial markets are at their highest at the start of the year. The world’s major stock markets are breaking records while the economy as a whole is slowing down.


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Financial markets (illustrative photo).  (ERIC PIERMONT / AFP)

First, the records. Friday February 16 in Europe, the markets all ended at record highs. In Paris, the CAC 40 crossed the 7,700 points mark, an unprecedented level. In the United States, the same goes for the New York Stock Exchange. Everything is happening as if, on both sides of the Atlantic, companies had nothing to do with geopolitical tensions, with the continuing war between Russia and Ukraine, the conflict in the Middle East, between others. Never mind: the good results of companies achieved last year and technology stocks are supporting prices.

There is nothing artificial about the price increase. In the United States, the technology giants (GAFAM) gained some 12% in value, with the prize going to META (formerly Facebook; +34%) and Nvidia, the electronic chip specialist, which gained 47% in one year. year. A little over sixty billion dollars – almost 56 billion euros – have been invested since the start of the year in investment funds specializing in new technologies in the United States. Again, unprecedented in such a short period.

Towards a speculative bubble?

Even high interest rates no longer hold back investors. They put up with it. Generally, in the eyes of stock market operators, high rates weigh on company profits and their level of investment. But people who invest their money in the stock market, and their advisors, are increasingly convinced that central banks will start lowering rates. For many of them, it is no longer a subject. They anticipate and invest their money in the stock market.

Rational, irrational movement? Some analysts are starting to talk again about the risks of speculative bubbles, mainly around technology stocks and artificial intelligence. A bit like in 2000 when the internet stock market bubble exploded, leaving many investors in the lurch. We’re not there yet, but signs are starting to light up.

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