Investors Buoyant as AI Stocks Soar, Despite Tesla's Slump

The S&P 500 and Nasdaq hit record highs boosted by Alphabet's AI achievements, sparking optimism in tech stocks. Tesla, however, dropped significantly after warning of future challenges. U.S.-Japan trade optimism and robust U.S. job market reports also supported investor confidence, despite broader market declines in some sectors.

The S&P 500 and Nasdaq closed at record highs Thursday, buoyed by Alphabet's promising AI results that enhanced tech stock optimism, despite Tesla's decline after disappointing results.

Gains in Google, Microsoft, Nvidia, and Amazon, alongside positive U.S.-Japan trade news, lifted Wall Street spirits, despite some sector declines.

U.S. economic resilience was underscored by lower jobless claims. However, global trade uncertainties, particularly in the airline industry, and rising inflation fears remain key challenges.

(With inputs from agencies.)