Wall Street moved closer to fresh record highs on Wednesday after upbeat earnings from several artificial intelligence companies reinforced confidence in the sector, while a softer-than-expected US inflation reading added to investor optimism.
Artificial intelligence-linked stocks were among the biggest contributors to the rally after quarterly results from several companies exceeded market expectations, strengthening the view that the sector is generating enough growth to support its lofty valuations, according to an AP report.
The S&P 500 advanced 0.3%, putting the benchmark on course for its first gain since reaching an all-time high on Friday. By 10:30 a.m. Eastern time, the Dow Jones Industrial Average had risen 57 points, or 0.1%, while the Nasdaq Composite outperformed with a gain of 0.7%.
AI stocks lead rally
Super Micro Computer surged 14.2% after reporting quarterly earnings per share that came in 84% above analysts' estimates. The company also issued profit and revenue guidance for the coming quarters that exceeded Wall Street forecasts.
Cloud-based AI computing provider CoreWeave jumped 18.6% after posting quarterly revenue that surpassed expectations while reporting a smaller loss than analysts had anticipated.