Wall Street is on track to set more records as most U.S. stocks tick higher on Wednesday. The S&P 500 is up 0.2%, heading towards its 37th all-time high this year. The Dow Jones Industrial Average is slightly down, while the Nasdaq composite is adding 0.4% to its own record.
Big technology companies, particularly Taiwan Semiconductor, are leading the way. Taiwan Semiconductor’s U.S.-listed shares rose 2.5% after reporting a 33% increase in revenue in June from a year earlier. The company makes chips for Nvidia and others driving the rush into artificial-intelligence technology.
The frenzy around AI has propelled Nvidia’s stock to new heights, with a gain of 171.5% so far this year. The promise of future profits from AI has helped drive the U.S. stock market to record levels despite economic growth slowdown and inflation concerns.
Federal Reserve Chair Jerome Powell testified about interest rates, indicating the Fed’s willingness to cut rates to control inflation. The Fed is expected to begin cutting rates in September, but Powell emphasized the need for more data to support this decision.
The bond market also saw a significant move, with the 10-year Treasury yield edging down. A report on Thursday will provide further insight into inflation, which could impact both the bond and stock markets.
Earnings reporting season is set to begin, with companies like Delta Air Lines and JPMorgan Chase expected to deliver strong growth. Smart Global Holdings reported better-than-expected profit and revenue, while LegalZoom saw a decline after cutting its revenue forecast.
In global markets, Japan’s Nikkei 225 closed at a record high, driven by AI enthusiasm and a weakening yen. European indexes were also higher, while other Asian markets were mixed.
Overall, Wall Street continues its upward trajectory, fueled by tech companies and optimism around AI technology.
