Tech leads US stocks higher as traders ride AI hype and cheer debt ceiling progress

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Tech leads US stocks higher as traders ride AI hype and cheer debt ceiling progress
Xinhua/Wang Ying/ Getty Images
  • Tech led the stock market higher on Thursday as investors chase the growing hype around artificial intelligence.
  • Shares of Nvidia surged 5% on no material news and top investors like Steve Cohen and Bill Ackman expressed bullishness towards the potential of AI.
  • Investors are also looking toward progress on the debt ceiling negotiations and the potential for another Fed rate hike in June.
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US stocks jumped on Thursday with technology companies leading the major averages higher thanks to the growing hype around artificial intelligence.

Shares of Nvidia surged 5% on no material news, with the company seen as a major beneficiary of the growth in AI, and top investors like Steve Cohen, Chase Coleman, and Bill Ackman have expressed bullishness towards the potential of AI.

Investors were also closely monitoring progress on debt ceiling negotiations, with the June 1 "X-date" now less than two weeks away. While President Biden traveled to Japan for the G7 summit, he said he would cut his trip early and return to Washington, D.C. to continue the debt ceiling negotiations.

The potential for another rate hike in June appeared more likely on Thursday following comments from Dallas Fed President Lorie Logan, who said that while the Fed made some progress towards taming inflation, "as of today, though, we aren't there yet." Fed President James Bullard also said on Thursday that another rate hike in June is possible.

Here's where US indexes stood at the 4:00 p.m. ET close on Thursday:

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Here's what else happened today:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil fell 1.18% to $71.97 per barrel. Brent crude, oil's international benchmark, fell 1.29% to $75.97.
  • Gold fell 1.25% to $1,960.10 per ounce.
  • The yield on the 10-year Treasury jumped eight basis points to 3.65%.
  • Bitcoin dropped 2.11% to $26,824, while ether fell 1.20% to $1,800.
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