AI Stocks Power US Market Surge Amid Crude Oil Price Drop
US stocks experienced a surge on Monday as artificial intelligence (AI) stocks led the charge. Despite warnings from executives at leading AI companies, investors focused on signs that spending on the technology continued to expand.
The Dow Jones Industrial Average rose 241.25 points, or 0.47%, to 51,923.89, while the S&P 500 gained 70.38 points, or 0.92%, to 7,720.88. The Nasdaq Composite added 393.21 points, or 1.48%, to 26,915.76.
Intel shares jumped 9% and Advanced Micro Devices surged 8.5% to become the latest chipmaker to reach $1 trillion in market valuation. Meta soared 6.2% to a more than seven-month high after Wells Fargo raised its price target on the stock.
The benchmark 10-year US Treasury yield slipped below the critical 5% level, easing pressure on equities. However, investors remained cautious about the interest-rate outlook after a recent pickup in inflation prompted the US Federal Reserve to raise rates for the first time in three years.