Tech Stocks Surge as Markets Hit Record Highs Amid AI Optimism

NEW YORK — U.S. stock markets reached new heights on Wednesday, driven by strong tech sector performance and optimism surrounding artificial intelligence (AI). The S&P 500 rose 0.61%, nearing its record closing high, while the Nasdaq Composite surged 1.28%. The Dow Jones Industrial Average also climbed 130.92 points, or roughly 0.3%, marking its third consecutive winning session.

AI-related stocks, including major tech companies, saw significant gains following robust earnings reports. However, the market rally faced a brief challenge when Elon Musk, CEO of Tesla and SpaceX, criticized a $500 billion AI project backed by tech giants. In a series of late-night posts on X, Musk accused the project’s backers of lacking the financial resources to fulfill their pledge. OpenAI CEO Sam Altman quickly refuted the claims, stating, “Wrong, as you surely know.”

Meanwhile, Jamie Dimon, CEO of JPMorgan Chase, addressed concerns about inflation and national security at the World Economic Forum in Davos, Switzerland. “If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it,” Dimon said, downplaying fears of economic instability.

In other news, CNN and NBC News are reportedly planning layoffs this week. While CNN’s cuts are expected to focus on production costs and team consolidation, NBC’s layoffs are anticipated to affect fewer than 50 employees. Both networks aim to streamline operations amid shifting media landscapes.

On the corporate front, Electronic Arts (EA) shares plummeted 15% in premarket trading after the company revised its fiscal third-quarter net bookings forecast to $2.215 billion, down from its previous guidance of $2.4 billion to $2.55 billion. EA attributed the shortfall to underperforming games, particularly its soccer franchise, which saw declining engagement during the December quarter.

As markets continue to react to these developments, investors are closely watching U.S. stock futures, which showed mixed results early Thursday. Netflix shares remained in focus after leading S&P 500 risers on Wednesday, while GE Aerospace surged 7% following a strong earnings report. Meanwhile, the U.K. launched an antitrust investigation into Apple and Google‘s mobile ecosystems, scrutinizing their operating systems, app stores, and mobile browsers for potential anti-competitive practices.