Tech Stocks Surge on AI Optimism and Major Deals

The S&P 500 closed higher, driven by gains in tech giants like Nvidia and Amazon amid AI market optimism. Stocks previously hit by valuation concerns recovered as AI demand boosted tech heavyweights. Federal Reserve discussions highlighted market stability with ongoing debates on future interest rate changes.

The S&P 500 concluded the trading session with gains on Wednesday, bolstered by a surge in technology shares, particularly Nvidia and Amazon, whose fortunes were lifted by positive developments in artificial intelligence. Nvidia's stock saw an uptick owing to a pivotal deal with Meta Platforms, promising millions of AI chips in the coming years.

The recent decline in AI-related stocks due to valuation worries began reversing as Amazon and Microsoft saw price increases. Despite initial investor apprehensions, figures from the AI sector are showing strong returns, with continued interest in technology stocks even after recent price drops, as Ross Mayfield of Baird noted.

Market indices reflected positive sentiment, with the S&P 500 gaining 37.05 points (0.56%) and the Nasdaq Composite rising 170.88 points (0.76%). Meanwhile, Federal Reserve minutes revealed divided opinions over future interest rate changes. In corporate news, Moderna's flu vaccine review buoyed its stock, while Analog Devices and Global Payments also reported encouraging financial forecasts.

(With inputs from agencies.)