The U.S. stock market witnessed a remarkable surge on Wednesday as tech companies emphasized the significant boost they are receiving from the artificial-intelligence (AI) boom. This upward trend has led to new records being set across various stock indexes, with the S&P 500 climbing 0.6% and adding to what appears to be one of its best years in the millennium. In the last 12 days, it has climbed 11 times, reaching an all-time high for the 56th time this year.
Key Highlights of the Day
Tech Companies and AI
Tech companies like Salesforce played a crucial role in pulling the market higher. After highlighting its AI offering for customers, CEO Mark Benioff stated that the rise of autonomous AI agents is revolutionizing global labor and reshaping industries. As a result, Salesforce's stock price jumped 11%. Marvell Technology also saw a significant leap of 23.2% after delivering better-than-expected results and giving a profit forecast that topped analysts' expectations. Nvidia, whose chips are powering the move into AI, rallied 3.5%, becoming the strongest force pushing the S&P 500 upward.Stock Index Movements
The Dow Jones Industrial Average rose 308 points, or 0.7%, while the Nasdaq composite added 1.3% to its own record. All these optimistic developments helped offset the 8.9% drop for Foot Locker, which reported profit and revenue that fell short of analysts' expectations. CEO Mary Dillon attributed this to customers' keenness for discounts and soft demand outside of key selling periods.Economic Indicators and Fed Expectations
This week's highlight for Wall Street is Friday's jobs report from the U.S. government, which will provide insights into the employment situation last month. A separate report on Wednesday showed that the U.S. services sector is still growing but not as much as expected. One respondent from the construction industry noted that the Fed's rate cuts have not brought down mortgage rates as hoped and that the unknown effect of tariffs clouds the future.In the bond market, the yield on the 10-year Treasury fell to 4.18% from 4.23% late Tuesday. Traders are expecting the Fed to cut its main interest rate again when it meets in two weeks. The Fed began easing its rate from a two-decade high in September, hoping to support the job market. However, the election of Donald Trump has somewhat scrambled Wall Street's expectations as his policies could lead to higher inflation and alter the Fed's plans. Fed Chair Jerome Powell stated that the central bank can cut rates cautiously as inflation has slowed and the economy remains sturdy.Other Market Movements
On Wall Street, Campbell's sank 6.2% despite increasing its dividend and reporting a stronger profit than analysts expected. Its revenue fell short of expectations, and the National Football League's Washington Commanders hired its CEO Mark Clouse as team president. Gains for airline stocks, such as JetBlue Airways and Southwest Airlines, helped offset this drop. JetBlue jumped 8.3% after seeing stronger bookings in November and December following the presidential election and benefiting from lower fuel prices and improved on-time performance.In stock markets abroad, South Korea's Kospi sank 1.4% following a night of drama in Seoul where President Yoon Suk Yeol faced possible impeachment after declaring martial law and then revoking it six hours later. In the crypto market, bitcoin climbed near $99,000 after Trump said he would nominate a cryptocurrency advocate to chair the Securities and Exchange Commission.All told, the S&P 500 rose 36.61 points to 6,086.49. The Dow climbed 308.51 to 45,014.04, and the Nasdaq composite rallied 254.21 to 19,735.12.
