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The S&P 500 is set to close the week at a new record high, fueled by investor optimism surrounding artificial intelligence (AI) amid geopolitical tensions and economic uncertainty. As of now, the S&P 500 has reached its first record close since February 2025, while the Nasdaq Composite is nearing its own record high, and the Dow Jones has gained 0.7%.
Key investments in AI are driving this market rally, with notable developments including Amazon’s $13 billion investment in AI data centers in Australia, Meta’s $100 million signing bonuses for AI talent, and SoftBank’s plan for a $1 trillion AI campus in Arizona. Additionally, AI stocks like those in the AI Appliers and Builders indices saw increases of 2.5% and nearly 4% respectively over the past week, despite disappointing retail sales and homebuilder sentiment.
AI advancements continue to dominate the market narrative, emphasizing long-term growth prospects as investors filter out short-term distractions from geopolitical and economic noise.
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