The US stock market has achieved a record high, driven by enthusiasm surrounding artificial intelligence (AI). On Tuesday, the S&P 500 closed 0.58 percent higher, surpassing its previous peak from mid-August. The Nasdaq Composite, which is more heavily invested in technology stocks, also set a new high, increasing by 0.45 percent.
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Leading the tech sector, Amazon saw a 1.95 percent gain, while Microsoft and Tesla rose 0.78 percent and 0.51 percent, respectively. Apple and Alphabet both increased by 0.22 percent, and Nvidia gained 0.14 percent. However, Meta, which has jumped over 20 percent since the launch of its AI assistant last month, fell 0.41 percent. Other notable tech stock movements included Marvell Technology up 5.81 percent and Cisco up 4.54 percent.
Keith Lerner, chief investment officer at Truist Advisory Services, characterized the current market rally as a “technology and AI surge,” emphasizing that technology has emerged as a dominant theme of the market. According to Lerner, the technology and communication services sectors were the only S&P 500 sectors to rise last month, while the remaining nine sectors declined.
Despite challenges such as energy issues linked to the US-Israel conflict and a sell-off of US government bonds due to rising debt levels, the market is projected to achieve its fourth consecutive year of double-digit returns. The S&P 500 is up 14 percent in 2026, and the Nasdaq Composite has increased by 18.78 percent.
Lochlan Halloway, a senior equity strategist at Morningstar Australia, noted that investor optimism around AI continues to drive the market. Halloway indicated that substantial investments in data centers are anticipated to yield favorable returns, which currently outweigh concerns like rising interest rates and high oil prices.
Although Lerner believes the rally could persist into the end of 2026, given historical patterns and strong corporate earnings expectations, he cautioned that rising interest rates present a significant risk. He indicated that historically, the fourth quarter of midterm election years has produced an average gain of 7 percent, with positive results 84 percent of the time since 1950.
Meanwhile, Asian stock markets experienced declines on Wednesday, with major indices in Japan, South Korea, and Hong Kong recording losses. The Kospi in Seoul led the downturn with a 1.98 percent drop, while Tokyo's Nikkei 225 fell 0.92 percent, and the Hang Seng Index in Hong Kong was down 0.57 percent shortly before market closure.
On the commodities front, oil prices have risen amid ongoing conflict in the Middle East. As of 07:30 GMT, Brent crude futures for December delivery were priced at $101.16 a barrel, up 0.58 percent.