Tokyo's Nikkei 225 Index Tops 68,000 for the 1st Time as Wall Street Logs More Records

Japan’s Nikkei 225 index reached 68,172.89 on Wednesday, its first time surpassing 68,000, as AI-driven tech stocks propelled gains. The index climbed 2.2%, with Tokyo Electron and Advantest rising 10.1% and 4.6%, respectively. Meanwhile, U.S. stocks extended record territory, with the S&P 500 up 0.1% at 7,609.78, the Dow Jones Industrial Average rising 0.4% to 51,307.79, and the Nasdaq edging up to 27,093.90. The dollar briefly hit 160 yen before retreating, while oil prices increased by over $1 per barrel, with Brent crude reaching $97.03. U.S. job openings data exceeded expectations, signaling labor market strength, though analysts warn of a potential market slowdown after nine consecutive winning weeks for the S&P 500. AI-related stocks surged, with Hewlett Packard Enterprise jumping 19.5% after beating earnings forecasts, and Marvell Technology soaring 32.5% following Nvidia CEO Jensen Huang’s comment suggesting it could become a trillion-dollar company. Generac rose 5.7% after securing a deal to supply backup generators to a leading hyperscale data center operator. Alphabet announced an $80 billion cash raise to fund its $190 billion investment plan for 2024, raising questions about AI’s profitability amid massive spending. The company expects investment outlays to increase further next year, outpacing Disney’s total market value. Markets in Hong Kong and Shanghai saw declines, while Australia’s S&P/ASX 200 and Taiwan’s Taiex gained 0.3% and 1.8%, respectively. South Korea’s markets were closed for a holiday. The rally follows hopes of a U.S.-Iran deal to reopen the Strait of Hormuz, potentially easing oil supply constraints. Analysts remain divided on whether AI investments will deliver returns or signal an overinflated bubble.