Dow Jones futures showed a positive trend, strengthening by 0.17% to 52,710 during the European trading session on Thursday. Similar movements were experienced by the S&P 500 and Nasdaq 100 indices, which rose by 0.34% and 0.74% respectively, reflecting investor optimism toward tech-based assets.
This bullish sentiment was sparked by news from China, which plans to ease permits for major tech companies, such as Alibaba, ByteDance, and DeepSeek, to import H200 chips from Nvidia. The move is believed to provide a significant boost to the acceleration of artificial intelligence (AI) technology development in the region.
Despite the market enthusiasm, market participants remain cautious about long-term risks. Elevated energy prices have sparked fears that inflation could surge again. This situation puts the US Federal Reserve (The Fed) in a difficult position, with internal debate regarding the possibility of accelerating interest rate hikes to curb price pressures, as outlined in the June FOMC meeting minutes.
On the other hand, the debate over a potential tech bubble continues among Wall Street analysts. Veteran investor Stanley Druckenmiller argued that high valuations for AI companies like Nvidia and Palantir are not an indication of an immediate bubble, but rather a reflection of strong future revenue growth expectations, unlike the dot-com bubble phenomenon of the late '90s.
