SP 500 opens at another record as AI spending narrative holds

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInvestorSP 500 opens at another record as AI spending narrative holdsSpaceX shares fell, but it reported higher-than-expected AI-related outlays, which helped Nvidia Corp. rallyAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.Of the 372 S&P 500 companies to have reported so far through Tuesday, 87 per cent have beaten analysts’ earnings-per-share forecasts. Photo by Michael Nagle/Bloomberg via Getty ImagesUnited States stocks were on track to close at a record for a second day on Wednesday but pared early gains after Minneapolis Fed President Neel Kashkari said it is time for the central bank to start slowly raising rates. The latest batch of earnings pointed to strong demand for and spending on artificial intelligence. SpaceX shares fell, but it reported higher-than-expected AI-related outlays, which helped Nvidia Corp. rally after SpaceX head Elon Musk touted his computing plans.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe S&P 500 index advanced 0.2 per cent as of 11:17 a.m. in New York, after setting a closing record on Tuesday, while the Nasdaq 100 index wavered between gains and losses. West Texas Intermediate crude was little changed, trading around US$76 per barrel, as U.S. President Donald Trump told reporters in Los Angeles on Tuesday night that talks with Iran were “moving along very nicely” and Iran’s foreign ministry announced it had agreed with Oman on the geopolitical coordinates of the proposed shipping route through the Strait of Hormuz.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“The weight of the evidence continues to support giving the bull market the benefit of the doubt,” Keith Lerner, Truist Advisory Services’ chief investment officer, wrote in a note. “Earnings remain our north star, the economy continues to show resilience, market participation has broadened, and valuation excesses have largely been worked off.”SpaceX, formally known as Space Exploration Technologies Corp., shares fell eight per cent as investors evaluated results and braced for the next potential hit when US$101 billion worth of stock becomes available for trading Thursday. The options market had been expecting SpaceX stock to move like a meme-stock after earnings, more than 14 per cent in either direction.“The company has reverberations across the whole economy,” Carnegie Investment Counsel Research Director Greg Halter said. He cited SpaceX’s data centres in addition to its space endeavours and rocket launches.In other earnings news, Advanced Micro Devices Inc. shed 5.2 per cent after giving a sales outlook that underwhelmed markets even though it was higher than consensus estimates, a sign shareholders expected more of a return from the global expansion of AI data centres.Of the 372 S&P 500 companies to have reported so far through Tuesday, 87 per cent have beaten analysts’ earnings-per-share forecasts, while 69 per cent of companies have positively surprised on sales.Wolfe Research strategist Chris Senyek in a Wednesday note questioned whether margins may have peaked for this cycle, citing 1.2 percentage points of margin expansion since the prior quarter for the median S&P 500 company. “The compounding effect of strong company fundamentals, aided by AI, has pushed margins higher,” he said, adding that there may be “continued expansion over the remainder of the year as the U.S. economy remains strong.”—With assistance from Neil Campling. 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