Wall Street ended higher on Wednesday, extending its tech-led rally and reaching two-week highs as worries over artificial intelligence (AI) disruption and costs took a back seat to renewed optimism about the technology's potential benefits.
Sources:
detroitnews.combusinesstimes.com.sgAll three major US stock indexes advanced, with the Nasdaq enjoying the largest percentage gain, powered by chip stocks as markets approached the end of a tumultuous month marked by concerns over massive investments in AI infrastructure.
Sources:
virginiabusiness.comnst.com.myNvidia, a leader in the AI revolution, reported fourth-quarter revenue of $68.13 billion, surpassing analyst estimates.Following the announcement, Nvidia's shares rose approximately 3% in extended trading.
Sources:
detroitnews.comvirginiabusiness.comThe Philadelphia Semiconductor index gained 1.6% ahead of Nvidia's earnings, reflecting strong investor sentiment in the sector.
Sources:
businesstimes.com.sgfreemalaysiatoday.comAmid the tech gains, the S&P Software & Services index rebounded from a 23% year-to-date slump, jumping 2.9% during the trading session.Zach Hill, head of portfolio management at Horizon Investments, noted that the market is currently experiencing a "push-pull" dynamic between negative sentiment and extreme price action in specific areas of the market.He stated, "I think the (AI) disruption concerns are more acute right now than worries over return on investment".
Sources:
detroitnews.comnst.com.myRichmond Fed President Tom Barkin weighed in on the ongoing discourse regarding AI, suggesting that the technology might enhance jobs instead of displacing them.Barkin emphasized that AI could enable workers and improve job market efficiency, countering some fears about its impact on employment.
Sources:
virginiabusiness.comfreemalaysiatoday.comThe Dow Jones Industrial Average rose by 307.65 points, or 0.63%, closing at 49,482.15, while the S&P 500 gained 56.06 points, or 0.81%, to reach 6,946.13.The Nasdaq Composite saw an increase of 288.40 points, or 1.26%, ending at 23,152.08.
Sources:
detroitnews.combusinesstimes.com.sgAmong the 11 major sectors in the S&P 500, technology stocks led the gains, while industrials faced the largest losses.Notable stock movements included Axon Enterprise, which surged 17.6% after beating fourth-quarter profit estimates.Conversely, both First Solar and Lowe's Companies experienced declines, with their shares dropping 13.6% and 5.6%, respectively, due to weaker-than-expected annual sales guidance.
Sources:
detroitnews.comnst.com.myIn the housing sector, Lowe's disappointing report contributed to underperformance among homebuilders, which fell by 3% and 3.7%, despite a drop in the 30-year fixed mortgage rate to a 3-1/2-year low, according to the Mortgage Bankers Association.
Sources:
virginiabusiness.combusinesstimes.com.sgAdditionally, alcohol producers like Brown-Forman and Molson Coors saw their stocks decline by 7.6% and 4.8%, respectively, following Diageo's projection of a 2% to 3% organic sales decline in 2026 and a cut in its interim dividend.
Sources:
businesstimes.com.sgfreemalaysiatoday.comGoDaddy's stock tumbled 14.3% after the internet services provider forecast annual revenue below Wall Street expectations, reflecting ongoing volatility in the tech sector.With the recent fluctuations in software stocks, upcoming earnings reports from Salesforce, Intuit, and Snowflake will likely come under heightened scrutiny from investors.
Sources:
detroitnews.comvirginiabusiness.comOn the New York Stock Exchange, advancing issues outnumbered decliners by a 1.78-to-1 ratio, with 635 new highs and 98 new lows observed.On the Nasdaq, 3,148 stocks rose while 1,557 fell, leading to a 2.02-to-1 ratio of advancing issues over decliners.The S&P 500 recorded 50 new 52-week highs and nine new lows, while the Nasdaq Composite noted 127 new highs against 94 new lows.
Sources:
detroitnews.comnst.com.myThe trading volume on US exchanges reached 17.50 billion shares, below the 20.27 billion average for the last 20 trading days, indicating a cautious but optimistic market sentiment as investors navigate the evolving landscape of technology and its implications for various sectors.
