Canadian, U.S. stock markets notch new record highs amid continued AI boom

Stock markets in Canada and the U.S. reached new record highs, fueled by gains in energy and artificial intelligence sectors. The S&P/TSX composite index rose 434.57 points to 35,169.46, while the Dow Jones industrial average climbed 228.91 points to 51,307.79. The S&P 500 and Nasdaq composite also posted gains, reaching 7,609.78 and 27,093.90, respectively. Hewlett Packard Enterprise led market gains with a 19.5% surge after exceeding analyst profit expectations, citing strong demand for AI infrastructure. Marvell Technology jumped 32.5%—its best day since its 2000 IPO—after Nvidia’s CEO, Jensen Huang, suggested it could become the next trillion-dollar company. Nvidia itself slipped 0.7% but remains valued at over $5 trillion. Alphabet announced an $80 billion cash raise through stock sales to fund investments, planning up to $190 billion in spending this year alone. The company expects next year’s investment outlays to increase significantly, surpassing Disney’s total market value. Analysts note concerns about market overheating after nine consecutive weeks of S&P 500 gains, though AI-related stocks continue to drive broad market momentum. The rally reflects strong corporate earnings and optimism over potential U.S.-Iran negotiations to reopen the Strait of Hormuz, which could ease oil supply constraints. Theresa Shutt of Harbourfront Wealth Management attributed gains to AI-driven risk appetite, though geopolitical tensions and valuation concerns linger. Small- and mid-cap AI-adjacent companies are also showing resilience, signaling a broadening market recovery.