Market Surge: Wall Street's Soars on AI Optimism

Wall Street's main indexes rose to one-week highs driven by optimism in AI boosting semiconductor stocks. Reports suggested a less aggressive Trump tariff stance, favoring selective tariffs for critical sectors. The market responded positively, with significant gains across various tech stocks.

Wall Street's main indexes surged to one-week highs, fueled by a wave of optimism in artificial intelligence that bolstered semiconductor stocks. Investor sentiment was buoyed by reports indicating that the incoming Trump administration might pursue a more measured approach to tariffs, targeting specific sectors crucial to U.S. economic security.

Carmakers, including Ford and General Motors, saw marked upticks, despite President-elect Donald Trump later refuting claims of selective tariffs. Broadly perceived as favorable to corporate America, Trump's policies have sparked investor interest in the potential economic gains they could yield.

The tech sector led the charge, with notable advances in chipmakers following Microsoft's ambitious $80 billion AI investment. Nvidia, AMD, and Micron Technology saw remarkable gains. Meanwhile, a week loaded with economic data and Federal Reserve insights keeps investors attentive to potential shifts in monetary policy this year.

(With inputs from agencies.)