Wall Street has ended higher as chip stocks surged on renewed AI optimism, and the Dow Jones Industrial Average reached a record high.
Memory and storage technology stocks rallied after Nvidia CEO Jensen Huang, speaking at the Consumer Electronics Show in Las Vegas, gave details about upcoming AI processors that include a new layer of storage technology. But comments from Huang about the efficiency of the company's new chips raised concerns about demand for data centre cooling systems.
According to preliminary data, the S&P 500 gained 42.92 points, or 0.61 per cent, to end at 6,944.97 points, while the Nasdaq Composite gained 147.40 points, or 0.63 per cent, to 23,543.22. The Dow Jones Industrial Average rose 489.12 points, or 1.00 per cent, to 49,466.30.
Investors also brushed aside fears of broader geopolitical fallout after US forces captured Venezuelan President Nicolas Maduro over the weekend, betting the move could pave the way for US firms to gain access to Venezuela's oil reserves. But oil stocks dipped after robust gains in the prior session, with giants Exxon Mobil and Chevron losing ground.
Fresh economic data due
Investors are also looking forward to reliable economic data as the effects of a record 43-day federal government shutdown wear off. Upcoming releases include the Job Openings and Labor Turnover Survey (JOLTS) on Wednesday and Friday's jobs report for December.
Weaker-than-expected employment data could strengthen the case for central bank interest rate cuts.
Markets also parsed comments from Richmond Federal Reserve President Tom Barkin, who reiterated the US central bank's careful take on further cuts, in contrast to Governor Stephen Miran's call for aggressive cuts in a Fox Business interview.
Reuters
