Wall Street Gains Amid AI Investment Shakeout/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks climbed Thursday, nearing record highs. Investors weighed mixed earnings and AI-driven market shifts. Treasury yields eased ahead of key inflation data.
US Stocks AI Winners – Quick Looks
- S&P 500 up 0.4%, near record high
- Dow rises 260 points; Nasdaq gains 0.3%
- Equinix jumps 11.6% on strong AI demand outlook
- Nvidia edges higher, lifting broader market
- Treasury yields dip before inflation report
Deep Look: US Stocks Tick Higher as Investors Separate AI Winners From Losers
U.S. stocks inched higher Thursday, once again hovering near record territory as investors sorted through mixed earnings results and continued to evaluate which companies stand to benefit most from the artificial intelligence boom.
The S&P 500 rose 0.4% in early trading, sitting just below its all-time high set last month. The Dow Jones Industrial Average climbed 260 points, or 0.5%, while the Nasdaq Composite added 0.3%.
AI Infrastructure Boosts Equinix
One of the day’s biggest gainers was Equinix, which surged 11.6% despite reporting quarterly profit that fell short of Wall Street expectations. Investors focused instead on the company’s stronger-than-expected financial outlook for 2026.
CEO Adaire Fox-Martin said demand for Equinix’s digital infrastructure solutions “has never been higher,” reflecting continued expansion in artificial intelligence and cloud computing. The company’s global network of data centers plays a key role in powering AI systems, which require massive computing capacity.
The rally underscores Wall Street’s belief that companies supplying AI infrastructure may continue to benefit even as questions grow about whether broader AI investments will translate into sustained profits for customers.
Nvidia Remains Market Force
Chipmaker Nvidia rose less than 1%, but its massive market value made it the single biggest contributor to gains in the S&P 500. Nvidia has become one of the primary beneficiaries of the AI surge, supplying graphics processing units essential for training and running advanced AI models.
Some Tech Stocks Feel Pressure
Not every technology company is riding the AI wave.
AppLovin dropped 12.8% even after delivering stronger-than-expected quarterly profits. The stock has been under pressure this year amid concerns that AI-driven competitors could disrupt parts of the software advertising market.
Similarly, Cisco Systems slid 7.3% despite topping revenue and earnings forecasts. Investors appeared wary after the company indicated that profit margins may shrink in the current quarter, potentially due to rising component costs tied to AI-related demand.
Bond Market and Fed Outlook
In the bond market, Treasury yields edged lower after a report showed jobless claims were slightly higher than economists expected — though still relatively low overall. The yield on the 10-year Treasury dipped to 4.16% from 4.18% the previous day.
Investors are also looking ahead to Friday’s consumer inflation report. Economists expect it to show inflation easing to 2.4% from 2.7% in December.
Stronger labor market data earlier this week has complicated expectations for the Federal Reserve. A resilient economy may encourage the Fed to keep interest rate cuts on hold longer, despite calls from Donald Trump for lower borrowing costs.
Global Markets Rise
Markets overseas also posted gains. South Korea’s Kospi jumped 3.1%, driven by advances in major technology names. In Europe, Germany’s DAX rose 1.4%, while France’s CAC 40 added 1%.
As earnings season continues, investors remain focused on identifying which companies are positioned to thrive in the AI era — and which may struggle to keep up.
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