Wall Street sets more records thanks to booming AI stocks

The U.S. stock market reached new all-time highs Tuesday, driven by gains in artificial-intelligence-linked companies. The S&P 500 rose 0.1% to 7,609.78, the Dow Jones Industrial Average climbed 0.4% to 51,307.79, and the Nasdaq inched up by less than 0.1% to 27,093.90. Hewlett Packard Enterprise led gains with a 19.5% jump after reporting quarterly profits exceeding analyst expectations, attributing growth to AI infrastructure demand. Marvell Technology soared 32.5% following Nvidia CEO Jensen Huang’s suggestion it could become “the next trillion-dollar company,” mirroring Micron Technology’s AI-driven rise. Alphabet announced an $80 billion cash raise to fund AI investments, with plans to spend up to $190 billion this year—more than Disney’s total market value. The company expects next year’s spending to rise further, though its stock fell 3.9%, reflecting concerns about AI’s profitability. Generac’s 5.7% gain came after securing a deal to supply backup generators to a leading hyperscale data center operator, highlighting massive AI infrastructure spending. Oil prices rebounded, with Brent crude climbing 1.1% to $96.00 per barrel, recovering from last week’s drop amid hopes of a U.S.-Iran deal to reopen the Strait of Hormuz. Treasury yields remained stable, with the 10-year yield at 4.45%, despite a brief spike after reports of strong job openings in April. Analysts caution that high yields could slow economic growth and weigh on markets, while the S&P 500’s nine-week winning streak may face a correction. The rally underscores AI’s dominance in stock performance, though critics question whether investments will deliver expected returns. Alphabet’s spending and Marvell’s surge reflect optimism in AI’s transformative potential, even as market volatility and geopolitical risks linger.