AI Summary
Show More
Quickly grasp the article's content and gauge market sentiment in just 30 seconds!
The Nasdaq 100 index just closed at a record high yet again yesterday (Tue, June 2), after last week securing its 8th weekly gain over the past 9 weeks.
This marks the 20th new record high for the Nasdaq 100 index so far in 2026!
DECODE: The Nasdaq 100 index is like a basket of non-financial stocks (mostly tech stocks), containing some of the biggest US companies such as Nvidia, Apple, Alphabet, Microsoft, Tesla and many more.
So far this year, this tech-heavy stock index has not only outperformed other major US stock indexes — which also respectively hit fresh record highs on Tue, June 2nd — but also other major assets as well:
This explains it all: AI.
The artificial intelligence boom is driving massive gains in tech stocks.
Here's a snapshot of the price action from yesterday (Tue, June 2) alone:
Chipmaker Marvell surged 33% after Nvidia's Jensen Huang said it could become the next $1 trillion company.
Server company HPE soared 19.5% - its largest-ever, 1-day jump - after the server company forecasted higher-than-expected sales forecasts on "rampant AI demand."
AI startup Anthropic filed for its IPO, adding to the mega-IPO frenzy with SpaceX (the latter could make Elon Musk the world's first trillionaire!)
Hence, investors are pouring money into anything AI-related — and US tech stocks sit at the center of that trade.
Within the Bybit universe, the NAS100 isn't even the best-performing major stock index so far in 2026:
South Korea KOSPI: +109% year-to-date
Taiwan RIC: +73% year-to-date
Japan Nikkei 225: +36% year-to-date
Nasdaq 100: +21% year-to-date
AI-mania is the common driving factor for the above-listed stock markets, driving these indices to record highs!
After all, Taiwan, Japan, and South Korea are home to the companies that build the hardware powering the AI boom: think TSMC (+43.7% ytd) making the chips, Samsung (+186% ytd) and SK Hynix (+238% ytd) supplying AI memory, and Tokyo Electron (+55% ytd) making chip manufacturing equipment.
So, when AI demand surges, their stock markets surge with it.
For comparison, global stock markets, as measured by the benchmark MSCI ACWI index, have risen "only" +12% year-to-date.
Gold: After peaking in January and falling over 19%, gold is stuck — high bond yields, a strong dollar, and expectations the Fed will raise US interest rates are all weighing on prices.
US Government Bonds (Treasuries): Rising oil prices are stoking inflation fears, pushing yields higher and bond prices lower.
Oil: Although Brent Crude remains elevated due to the US-Iran conflict, and still up over 60% so far in 2026, it's still about 18% below its Iran war peak near-$120/bbl on lingering hopes of a US-Iran peace deal.
Looking further out, markets are also digesting the prospects of demand destruction:Iran war → global economy slows → less demand for oil → oil prices move lower.
Note that oil demand in India - the world's 3rd-biggest importer - is already expected to see its lowest levels since the pandemic.
Such prospects may cap oil's gains, barring a rapid re-escalation in US-Iran tensions that keeps the Strait of Hormuz closed for longer.According to Wall Street analysts surveyed by Bloomberg ...
The NAS100 index is forecasted to rise another 11% over the next 12 months!
US stock markets have ignored the below-listed risks so far, though they still warrant a reminder as a responsible note of caution:
Too many people are already "all in." Positioning in Nasdaq 100 stocks is at stretched levels — when everyone is already bought in, even a small piece of bad news (e.g. a sudden re-escalation in the Iran war) can trigger a wave of selling as traders rush to lock in profits.
Rising bond yields could kill the party. Oil prices near $97 a barrel are stoking inflation fears, which could force the Fed to keep interest rates high for longer — and when rates stay high, expensive tech stocks become less attractive to own. We saw a brief episode of this in mid-May.
The Middle East war is still unresolved. The US-Iran conflict and the closure of the Strait of Hormuz remain live risks — any sudden escalation could spike oil prices, reignite inflation fears, and send stocks sharply lower.
Money is chasing growth, and AI-powered stocks and indexes are the most popular growth story in the market right now.
READ MORE:
DISCLAIMER:
This article is provided for general information and reflects the author's views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.