Stocks in the United States rose today, with the S&P 500 and Dow Jones indices climbing to new record highs. Investors were encouraged by results from companies operating in the artificial intelligence sector, such as Palantir and Caterpillar. Markets were also supported by falling oil prices and government bond yields, as investors bet on a deal that could calm the situation surrounding the war between the US and Iran.
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AI-linked company results boosted stock indices
The Dow Jones index rose 907.47 points, or 1.7 percent, to 54,085.88 points. The broader Standard & Poor’s 500 index increased 136.02 points, or 1.79 percent, to 7,736.52 points. The Nasdaq technology market index rose 671.1 points, or 2.59 percent, to 26,584.99 points. During this earnings season, investors are closely watching AI-linked companies to see if massive investments in the sector are starting to pay off. Palantir Technologies shares surged as the company raised its annual revenue forecast. Caterpillar shares strengthened after the company increased its annual revenue growth forecast, as data center construction for AI boosted demand for its power generation equipment and construction machinery. Caterpillar is considered a barometer of the global industrial economy.
Shares of semiconductor companies, which also benefit from AI investments, also rose sharply. Of the 11 major sectors in the S&P 500 index, technology performed best. Favorable earnings also helped pharmaceutical company Pfizer rise. After market close, Elon Musk’s space company SpaceX will publish its first earnings report since going public. The company’s shares were rising ahead of the earnings release.
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Oil prices fell, dollar remained virtually unchanged
Stocks were also helped by falling oil prices after reports emerged of continued diplomatic efforts to end the conflict between the US and Iran. The reduction in oil prices also eased expectations of further interest rate increases by the US central bank and led to a decline in US government bond yields, Reuters reported.
The US dollar remained virtually unchanged against a basket of leading world currencies. The exchange rate continues to be influenced by the effects of coordinated intervention by Japan and the US in support of the yen, as well as lower oil prices following easing tensions in the Middle East. Investors are also awaiting Friday’s employment report from the US, which could indicate the future direction of the Fed’s monetary policy. The dollar index lost a slight 0.02 percent and was hovering around 99.88 points. The euro strengthened against the dollar by 0.2 percent to 1.1530 USD. The dollar rose against the yen by 0.4 percent to 157.76 JPY, and the euro against the yen by 0.6 percent to 181.90 JPY.
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Source: ČTK
