CNBC Daily Open: AI fervor takes over Wall Street

Japan’s Nikkei 225 reached a new high on Monday after a long weekend, while Chinese markets ended a nine-day winning streak. The broader Topix index also saw gains. Wall Street closed the week on a positive note, with the S&P 500 hitting fresh highs and the Dow reaching an all-time high. The Nasdaq Composite, however, touched a fresh 52-week high but closed lower.

Xiaomi’s big EV bet

Chinese smartphone company Xiaomi is aiming to attract around 20 million users with its first electric vehicle (EV) release, despite concerns about its ability to sell more expensive products compared to its lower-priced technology offerings.

South Korea market measures

South Korea’s financial regulatory body, the FSC, has revealed new measures to enhance corporate governance and boost stock market valuations in the country.

Berkshire Hathaway earnings jump

Berkshire Hathaway reported a 28% surge in operating earnings in the fourth quarter and achieved record cash levels. Full-year operating earnings rose by 17% compared to the previous year.

[Pro] China AI stocks surge

Chinese artificial intelligence (AI) stocks, notably Baidu, are seeing a rise in value. Analysts have praised Baidu as the top AI player in China’s internet industry, with the company scheduled to release its earnings this week.

The bottom line

Nvidia’s blockbuster earnings drove Wall Street’s euphoria last week, briefly pushing its market capitalization above $2 trillion. The strong earnings season and optimistic outlook have contributed to market rallies, with the Dow and S&P posting record closes. However, the endurance of the AI momentum is uncertain as inflation risks loom. The upcoming release of the personal-consumption expenditures index, a key inflation gauge, could potentially impact the market.