U.S. stocks moved higher, driven mainly by the technology sector and companies linked to artificial intelligence. The market also found some relief in a slight decline in oil prices, while the U.S. dollar weakened after recent gains. Investors reacted to a mix of macroeconomic signals and corporate developments.
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AI Sector as the Main Growth Driver
The broader S&P 500 index rose by 1.01% to 6,699.38 points, while the Dow Jones Industrial Average gained 0.83% to close at 46,946.41 points. The tech-heavy Nasdaq outperformed, climbing 1.22% to 22,374.18 points. The rally was largely fueled by companies connected to artificial intelligence, which continue to dominate investor attention.
Shares of Meta rose by 2.33% after the company announced plans to reduce its workforce in order to offset high investments in AI infrastructure. Nvidia gained 1.65% following the unveiling of new technologies, with additional support coming from a strong outlook by Foxconn. Tesla added 1.11% after CEO Elon Musk stated that its AI chip project would launch within a week, boosting optimism around its technological direction.
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Dollar Weakens as Markets Watch Central Banks
In currency markets, the U.S. dollar weakened, retreating from ten-month highs. The dollar index fell by 0.57% to 99.787 points, while the euro strengthened to 1.1503 USD. The dollar also lost ground against the yen, reflecting a shift in investor sentiment and a gradual move away from safe-haven assets.
In recent weeks, the dollar had benefited from geopolitical tensions and rising oil prices, particularly related to developments around the Strait of Hormuz. However, investor focus is now shifting toward upcoming central bank meetings, including those of the Fed, ECB, BoE, and BoJ, which could significantly influence market direction and global liquidity.
Source: ČTK
