Wall Street ends higher on revived AI momentum
SPY•U.S. stocks closed higher, led by the Nasdaq’s 1.18% gain, as renewed enthusiasm for AI lifted technology shares and third-quarter reporting season continued. The Dow rose 0.03% and the S&P 500 gained 0.60%.
1. AI shares lift markets
An AI-fueled technology rally sent U.S. stocks higher on Tuesday, with the Nasdaq leading gains. News surrounding Anthropic’s expected initial public offering helped chip stocks rise for a third consecutive session. Data showing higher new orders for computers and peripheral equipment supported the view that AI-related spending remains strong.
2. Earnings move individual stocks
Nearly half of S&P 500 companies had reported third-quarter results, and 83% had beaten expectations, based on the most recent available data. Boeing fell 10.7% after a larger-than-expected quarterly loss, while Xylem dropped 14.2% after trimming its full-year forecasts. UPS rose 5.8% after raising annual revenue and profit forecasts, and Royal Caribbean gained 5.5% after lifting its full-year profit forecast.
3. Indexes and Fed meeting
The Dow rose 15.99 points to 52,377.57, the S&P 500 gained 45.83 points to 7,722.60, and the Nasdaq advanced 308.43 points to 26,477.81. The Federal Reserve began its two-day policy meeting; a decision to hold the federal funds target rate at 3.75% to 4% was widely expected.
