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Tech giants surge on AI-driven profits, lifting US stocks
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The U.S. stock market demonstrated renewed strength as major tech companies reported AI-driven revenue gains, highlighting the growing influence of artificial intelligence on corporate performance and market valuations.

Market momentum details: The major U.S. stock indexes showed positive movement in Wednesday morning trading, reflecting investor optimism in the technology sector.

  • The S&P 500 increased by 0.4 percent, continuing its remarkable run of 10 gains in 11 days
  • The Dow Jones Industrial Average rose 181 points, representing a 0.4 percent gain
  • The Nasdaq composite added 0.1 percent to its value
  • The S&P 500 is on track to set its 56th record high of the year, marking one of its strongest performances this millennium

Bond market indicators: Treasury yields provided mixed signals about economic sentiment and inflation expectations.

  • The 10-year Treasury yield slightly decreased to 4.22 percent from 4.23 percent
  • Higher long-term yields typically indicate investor confidence in economic growth
  • These elevated yields could also suggest concerns about future inflation pressures

Salesforce performance highlights: The customer relationship management giant exceeded revenue expectations while slightly missing profit targets.

  • Third-quarter revenue reached $9.44 billion, surpassing analyst estimates by $100 million
  • Earnings per share came in at $2.41, slightly below the expected $2.44
  • The company’s stock responded positively, climbing 9.2 percent
  • CEO Marc Benioff attributed the strong performance to the company’s AI initiatives and their impact on customer operations

Marvell Technology breakthrough: The semiconductor company demonstrated significant growth, driven by strong demand for AI-related products.

  • Stock price surged 21.9 percent following the earnings announcement
  • Revenue reached $1.80 billion (±5%), exceeding forecasts by $150 million
  • Earnings per share of 43 cents outperformed the expected 41 cents
  • Morningstar analysts noted Marvell’s strategic position in the AI chip market and its strong optical chip presence

Future trajectory and AI influence: The technology sector’s AI-driven gains suggest a broader transformation in how companies leverage artificial intelligence for growth.

  • Marvell Technology reported continued strong demand for custom AI solutions
  • The company secured necessary supply chain capacity to meet future demand
  • Salesforce’s CEO highlighted the transformative impact of autonomous AI agents on global labor markets
  • These developments indicate AI’s growing role as a key driver of corporate performance and market valuations

Market implications: The convergence of strong tech earnings and AI advancement signals a potential shift in how investors value companies implementing artificial intelligence solutions, though questions remain about the sustainability of AI-driven growth and its long-term impact on market valuations.

U.S. stocks rise as tech companies report gains boosted by AI

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