AI Deals Drive U.S. Stock Market to Record Highs
The U.S. stock market today continued its upward trajectory on Friday, with all major indexes reaching record highs. This rally was bolstered by significant surges in the crypto market, led by Bitcoin, and spot gold. AI-related deals dominated headlines, with investors showing confidence in the stock market's sustainability despite potential signs of a top.
Key players in recent AI deals include Oracle and Meta, who are in negotiations for a $20 billion cloud deal, and Blackrock via its subsidiary Global Infrastructure Partners (GIP), which is in advanced talks to acquire Aligned Data Centers for an estimated $40 billion. Additionally, the AI investment firm MGX, founded by the Mubadala sovereign wealth fund, is involved in related discussions.
Investors are betting on the stock market rally to continue, with AI-related deals, such as OpenAI's valuation at $500 billion, buoying market confidence. Portfolio managers view the current rally as a strong, unstoppable trend, with investor bets on AI trades likely to increase if the Federal Reserve lowers interest rates.
The Dow Jones Industrial Average added 180 points, while the S&P 500 gained 0.28%, hitting a new record high for the 27th time since June. The Nasdaq Composite and Russell 2000 both added 0.25% and 0.22% respectively. Analysts note a high level of investor greed pushing the stock market into a 'manic' zone.
Despite the government shutdown delaying the release of the September jobs report, the stock market has not significantly reacted to this delay. As AI-related deals continue to dominate headlines, investors remain confident in the stock market's rally, with all major indexes reaching record highs on Friday.
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