Wall Street Rises on AI Chip Gains and Upbeat Data

Major U.S. indices climbed as Nvidia and other chipmakers gained on AI demand, while tech‑heavy Nasdaq outperformed amid strong global markets and a modest rise in Treasury yields.

The Nasdaq advanced 175.25 points (0.8%) to 22,753.63, the S&P 500 climbed 38.09 points (0.6%) to 6,881.31 and the Dow rose 129.47 points (0.3%) to 49,662.66.

Wall Street opened strong as Nvidia (NVDA) shares rose after the AI chipmaker unveiled a multi-year, multi-generation strategic partnership with Meta (META) spanning on-premises, cloud and AI infrastructure. The tie-up will enable large-scale deployment of Nvidia CPUs and millions of Blackwell and Rubin GPUs, helping Nvidia end the session up 1.6% despite pulling back from intraday highs.

 

Chip stocks got another boost from Micron (MU) which surged 5.3% on news that David Teppers Appaloosa Management had tripled its stake in the company. Positive sentiment was also supported by upbeat U.S. data showing industrial production rose more than expected in January, though gains later faded after the Feds meeting minutes revealed officials remain divided on the path for interest rates.

Oil service stocks turned in some of the market's best performances on the day, resulting in a 2.7% surge by the Philadelphia Oil Service Index. Gold stocks also saw significant strength amid a sharp increase by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.5%. Oil producer, financial and transportation stocks also turned in strong performances while interest rate-sensitive utilities and commercial real estate stocks moved to the downside.

Asia-Pacific stocks moved mostly higher, with several markets still closed for holidays. Japan's Nikkei 225 Index jumped by 1.0% while Australia's S&P/ASX 200 Index climbed by 0.5%. The major European markets have also moved to the upside on the day while the U.K.'s FTSE 100 Index surged by 1.2%, the German DAX Index shot up by 1.1% and the French CAC 40 Index advanced by 0.8%.

In the bond market, treasuries moved lower after ending the previous session nearly unchanged. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, climbed 2.7 bps to 4.07%.

Powered by Capital Market - Live News