US Stocks Hit Record Highs, Fueled by Big Tech Companies

Lebanon Today

US stocks hit new record highs, mainly supported by the rise of major technology companies’ stocks, amid continued optimism that artificial intelligence will continue to drive these companies’ profits forward.

Apple’s market value temporarily reached $4 trillion, while Microsoft signed a new agreement with OpenAI giving it an equity stake estimated at approximately $135 billion.

This comes as investors await the earnings results of the “Big Five” in the technology sector, which represent a quarter of the value of the S&P 500 index, as investors seek positive signals confirming continued spending on artificial intelligence infrastructure.

The expectations of interest rate cuts by the Federal Reserve, as well as hopes for improved relations between the United States and China before the meeting between Presidents Trump and Xi Jinping on Thursday, also contributed to boosting these sentiments.

Despite warnings about high valuations and the possibility of a market correction, analysts point out that current technology companies have higher profitability levels and much stronger foundations compared to the tech bubble period in 2000.