MarketBeat Minute(2023-05-26)

Equity markets cheered results from NVIDIA, proving the dawn of the AI age is here. The company's results and guidance are mind-boggling and bode well for investors but may not be the signal for an economic boom. The shift to AI is just that, a shift superseding previous technology already in place. In that light, the AI boom is the next phase in tech and not a new industry to drive and sustain growth. Regarding NVIDIA's share price spike, the stock is unlikely to go much higher than it is now without a significant market consolidation or correction.

Tech stocks rallied on the news, but the S&P 500 and NASDAQ Composite remain below critical levels. Broader economic conditions weigh on equities and provide a headwind for the market. This means equities are more likely to move sideways than not in the near to mid-term, and a long-term trading range could also be in play.