Investor Interest in AI Boosts Stock Market Rally
New York stock exchanges opened higher as investor concerns regarding excessive spending on artificial intelligence technologies eased.
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New York's stock market began the week with a rally, driven by increasing investor interest in artificial intelligence (AI) focused companies. A notable reduction in concerns surrounding high expenditures on AI technologies contributed to the positive market sentiment.
Cloud computing firm CoreWeave saw its shares jump approximately 15% after reporting a 168% increase in third-quarter revenues and revising its 2026 outlook upwards. This positive development extended to other cloud technology stocks, with Nebius Group shares gaining 12% and Iren shares rising 6%.
Chipmaker Nvidia's shares also climbed 2.3% at the open. This recovery in Nvidia's stock provided a boost to other chip companies, including Marvell Technology, Micron Technology, Broadcom, and AMD, which saw gains exceeding 5% to 8%.
Across the broader market, the S&P 500 index rose 0.87% to 7,586.65 points, and the Nasdaq index gained 1.53% to reach 25,448.80 points. The Dow Jones index traded flat at 52,196.35 points. According to Bloomberg, Asian stocks also tracked the US tech rally, poised for gains.
Despite some lingering concerns over the AI trade, MarketWatch reported strong demand for Anthropic's initial public offering (IPO). Tiffany McGhee, CEO of of Pivotal Advisors, further noted that AI demand remains robust, with accelerating cloud growth.