Nasdaq reaches new peaks after five consecutive sessions of gains

Investing.com -- The Nasdaq achieved new record highs following five straight sessions of increases, according to Citi.

The investment bank noted that elevated interest rates are expected to slow the non-AI segments of the economy while having minimal impact on AI-related investment, provided equity valuations stay high.

Citi stated that enthusiasm for AI delivers dual benefits to the US economy. Investment spending on AI-related projects supports economic growth, while rising equity wealth strengthens consumer spending.

The bank added that moderately higher borrowing rates are not likely to significantly reduce demand for AI infrastructure investment. A decline in equity prices, however, would result in a substantial reduction in both AI investment and consumer spending.

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