Dow Surges Past 47,000 as AI Optimism Drives Rally
The Dow Jones Industrial Average surged past 47,000 points for the first time, driven by investor optimism in the AI sector. Despite strong earnings, Nike was the laggard, down after two days of significant gains.
The tech sector led the rally, with Nvidia hitting over 190 US dollars, its highest since last summer's stock split. The company announced a billion-dollar deal with OpenAI to build AI factories starting in 2026, with a capacity of at least 10 gigawatts. OpenAI also partnered with Samsung and its subsidiaries, along with SK Hynix, to develop AI data centers, including floating ones. Meanwhile, Lam Research continued its record-breaking streak, up 0.3 percent since September. Other Nasdaq 100 members like NXP Semiconductors, Datadog, Microchip Technology, and Micron also rose between 1.8 and 3.1 percent. Fujitsu and Nvidia expanded their collaboration to provide a customizable AI agent platform for specific industries. Hitachi and OpenAI signed a memorandum of understanding to collaborate on AI infrastructure and data centers worldwide. However, Boeing rose by a lackluster 0.2 percent, with the Boeing 777X jet facing further delays until at least 2027. Applied Materials fell 2.3 percent due to a decrease in net sales of 600 million US dollars for the fiscal year 2025/26.
The Dow, S&P 500, and Nasdaq 100 all reached new highs, with the Dow up 1.0 percent to 46,970 points, S&P 500 up 0.5 percent to 6,746 points, and Nasdaq 100 up to 24,895 points. Investor optimism remains high, fueled by the potential for profits in the AI sector, despite Nike's slight downturn after strong earnings.
