Wall Street surged to record highs on Wednesday as the focus on artificial intelligence technology continued to drive stocks higher. The total market value of Nvidia, a key player in the AI sector, crossed $3 trillion for the first time, solidifying its leadership in the industry.
The S&P 500 rose 1.2%, surpassing its previous all-time high set just two weeks ago. The Nasdaq composite saw an even bigger jump of 2%, also reaching a record high. The Dow Jones Industrial Average lagged behind with a modest gain of 0.2%.
Several tech companies reported better-than-expected profits, contributing to the market rally. Hewlett Packard Enterprise soared 10.7% after citing strong sales related to AI systems. Its positive results led to an increase in financial forecasts for the year.
Investors have been optimistic about the revenue potential of new technologies, propelling stock prices upward. Nvidia, in particular, saw a 5.2% increase, pushing its year-to-date gains to over 147%. The company’s success has placed it alongside Microsoft and Apple as the only U.S. stocks to exceed $3 trillion in total value.
Other major tech stocks also saw significant gains, including Microsoft, Meta Platforms, and Broadcom. Cybersecurity firm CrowdStrike impressed investors with better-than-expected profit and revenue figures, leading to a 12% surge in its stock price.
The S&P 500 closed at 5,354.03, the Nasdaq at 17,187.90, and the Dow at 38,807.33 following the tech-driven rally. However, Dollar Tree experienced a 4.9% decline after falling short on revenue despite meeting profit expectations. The retailer also announced plans to explore selling or spinning off its Family Dollar business.
Amid fluctuating economic data, Treasury yields dropped following reports of a slowdown in hiring at U.S. employers. Investors are anticipating potential interest rate cuts by the Federal Reserve to address economic concerns. The upcoming U.S. jobs report on Friday is expected to offer further insights into the labor market’s performance.
While challenges persist, particularly in the retail sector due to inflationary pressures, the market remains focused on the growth potential of AI technology. Investors are closely monitoring economic indicators for signals on future monetary policy decisions by the Federal Reserve.
In global markets, European stocks rose before the European Central Bank’s interest rate decision, while Asian indexes saw mixed results. The overall sentiment remains positive, driven by the ongoing advances in artificial intelligence technology and its impact on various industries.
