Nasdaq Rises Despite Rate Hike, Driven by Falling Oil Prices

Despite the U.S. Federal Reserve's (Fed) decision to raise the benchmark interest rate, the Nasdaq index rose by 1.6%. Not only the Nasdaq but also major indices such as the Dow Jones, S&P 500, and Russell 2000 all showed a collective upward trend.

In particular, semiconductor-related stocks, which are sensitive to interest rates, showed strength, proving the robustness of the tech stock market.

This rate hike decision was made unanimously by all voting committee members.

With this decision, the Fed maintained its hawkish stance, reaffirming its strong commitment to curbing inflation.

In the past, when he was vying for the Fed Chair position, Kevin Warsh expressed criticism that the Fed kept interest rates too high. However, his stance has now largely changed, and he advocates for interest rate hikes to combat inflation.

This change is based on his belief in the growth theory, emphasizing the AI technology revolution and that AI will drive growth. Warsh maintains that interest rate hikes are inevitable to combat inflation.

The bond market reacted positively to this interest rate hike. This was interpreted as a signal that the Fed was maintaining its independence and fighting inflation without succumbing to pressure from President Trump.

This market confidence led to a decline in long-term Treasury yields and contributed to easing inflation expectations.

The U.S. 10-year Treasury yield stabilized, falling from its previous 5% range to the 4.9% range. This is an unexpected trend where interest rates actually decreased after the FOMC's interest rate hike announcement.

The market anticipates that the Fed is taking proactive measures to manage prices, interpreting the hawkish rate hike decision as a positive long-term development.

This drop in oil prices helped alleviate global inflationary pressures and provided a positive signal to the market.

GPT-6 Astra is gaining attention for its ability to utilize computers very efficiently. It uses a lot of tokens, but it is highly regarded for its actual computer usage capabilities.

This level surpasses the limitations of the existing Grokboard, and there is growing anticipation that it has great potential as a complete personal agent when combined with other OpenAI products.

OpenAI's claims have sparked debate about whether artificial intelligence can surpass humans in mathematical domains.

JPMorgan provided 80,000 employees with access to the artificial intelligence (AI) model Claude. However, a problem arose when some employees' Claude token usage costs exceeded their monthly salaries.

In response, JPMorgan implemented a measure to limit Claude usage costs for developers to $2,000 per month. Additionally, to enhance security, it operates a separate workspace called DevSpace.

This raises expectations that Gemini 4 Pro will show performance that surpasses existing models.

This is the concept of AI infinitely developing by coding itself to create improved AI, which in turn improves future AI.

Z.AI's GLM model performs infrastructure engineering tasks and is used to improve the next-generation AI model training method itself.

Western countries and China have different stances on controlling the pace of such technological advancement, and AI self-improvement is expected to be a critical turning point in future AI development.