Tech Stocks Surge Amid AI Enthusiasm and Fed Rate Speculations

U.S. stock markets saw significant gains, with the Nasdaq and S&P 500 both rising around 2% amid investor optimism regarding potential Fed rate cuts and strong AI-related chip sales. Major tech stocks like AMD and Nvidia surged, boosting the broader indices, while Microsoft faced setbacks due to increased spending forecasts.

The Nasdaq and S&P 500 surged around 2% on Wednesday as investors anticipated hints from the Federal Reserve on potential rate cuts. Advanced Micro Devices' upbeat forecast for AI-chip sales propelled a 5% increase in its stock, lifting the entire semiconductor sector.

Nvidia also rose 12%, further boosting the Philadelphia SE Semiconductor index. However, Microsoft shares dipped 1.3% due to a high spending forecast for AI infrastructure. The S&P 500 Technology index led the broad-based gains, jumping 3%.

Boeing shares rose 3% after naming Kelly Ortberg as its new CEO. The S&P 500 logged 58 new 52-week highs, with the Nasdaq adding 85 new highs. Investor sentiment improved as Wall Street's fear gauge hit a one-week low, reflecting positivity from recent market activities.

(With inputs from agencies.)