The US stock market extended its rally for a fifth consecutive day, with the Dow Jones and Nasdaq rising up to 0.7%, driven by strong gains in chip stocks, including a 9% jump in Micron shares, according to livemint.com. This surge occurred amid optimism about artificial intelligence (AI) and easing oil prices on Wednesday.
The rally was supported by robust earnings reports from technology companies and sustained investor enthusiasm for AI-related stocks. Futures for the S&P 500, Dow Jones, and Nasdaq-100 all showed gains, signaling continued positive momentum. Goldman Sachs raised its year-end target for the S&P 500 to 8,000, joining Morgan Stanley and Deutsche Bank in bullish forecasts, as reported by livemint.com.
This development highlights the growing influence of AI on market dynamics, with chip manufacturers benefiting from increased demand for AI hardware. The rally also reflects broader investor confidence despite geopolitical tensions in the Middle East and falling crude oil prices, which dropped to their lowest levels since mid-April. The sustained tech sector strength underscores the importance of AI as a key driver in equity markets.
Investors will closely watch upcoming economic data, including personal consumption expenditures (PCE), for insights into monetary policy. Market participants are also awaiting further earnings reports and developments in AI technology adoption, which could influence the trajectory of the rally in the near term, according to livemint.com.