US stocks edge higher to fresh record closes, AI frenzy lifts Marvell
US stocks closed at fresh record highs after modest gains, fueled by a surge in AI-related shares led by Marvell Technology and Hewlett-Packard Enterprises.
US stocks opened lower but found a bid and finished modestly higher, extending one of the most impressive rallies in recent memory. The S&P 500 and Nasdaq both closed at fresh record highs, driven by a surge in AI-related shares.
A true indication of the state of the market was a nearly 30% rally in shares of Marvell Technology Inc, a semiconductor designer. The catalyst for the move was Nvidia CEO Jensen Huang saying it will be the next trillion-dollar company. That alone was enough to boost its market cap to $321 billion from $247 billion. It's a sign of the incredible retail frenzy in anything related to AI. Another big winner was Hewlett-Packard Enterprises, which soared 19% on earnings that crushed estimates. Server revenue was $5.45 billion, nearly $1 billion above estimates.
For forex traders, the risk-on sentiment supports higher-yielding currencies like the Australian and New Zealand dollars, while the US dollar may face headwinds as investors rotate into equities. The AI-driven rally also underscores the resilience of the tech sector, which could influence central bank policy expectations. Check NowPrice's FX page for real-time pricing on major pairs to gauge market reaction.
Looking ahead, traders will watch for further earnings reports from tech companies and any comments from Fed officials that could shift rate expectations. The sustainability of the AI rally will be key for risk appetite in the coming sessions.