Major US Stock Indexes Hit Records as Nvidia Rekindles AI Rally

All three major American stock indexes stormed to fresh all-time highs Thursday as Nvidia Corp.’s results rekindled faith that breakthroughs in artificial intelligence will boost profits and give stock prices further room to run.

The chipmaker’s blowout earnings report sparked a broad-based rally across Wall Street, sending the S&P 500 Index to its 12th record close of 2024 and leaving it up nearly 24% since late October. The Nasdaq 100 Index soared 3% while the Dow Jones Industrial Average — which is considered a proxy for US economic health — eclipsed 39,000 for the first time.

Of course, the S&P 500, the Nasdaq 100 and the Dow Jones Industrial Average have been posting simultaneous records off and on since the latter part of January — a feat that hadn’t happened since November 2021.

But the milestones drew fresh attention on Thursday, when the Dow rallied 1.1% and the 500-member index gained 2.2%. Meanwhile, the MSCI ACWI Index of both developed and emerging-market shares hit its highest level ever.

“We are seeing high-growth and high-margin tech titans break new ground in generating profits and investors are rewarding this brave new world,” said Michael Bailey, director of research at FBB Capital Partners. “All in, the new historic highs are in the right neighborhood, but perhaps investors are paying a slight premium to live in this swanky neighborhood.”

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