The Dow Jones Industrial Average, the flagship index of the New York stock market, topped 50,000 for the first time on the 6th (local time).
On the day, the Dow rose 1,206.95 points, or 2.47%, to close at 50,115.67 on the New York stock market. This is the first time the Dow has broken above 50,000.
The Standard & Poor's (S&P) 500 rose 133.90 points, or 1.97%, to 6,932.30, while the tech-heavy Nasdaq composite gained 490.63 points, or 2.18%, to 23,031.21.
A rally in semiconductor stocks, led by Nvidia, lifted the indexes after announcements that corporations would continue making astronomical investments in AI infrastructure. Nvidia, a component of the Dow, jumped 7.87% on the day. Nvidia rivals AMD (8.2%) and Broadcom (7.22%) also rose in tandem.
Corporations are increasing capital expenditures for building AI infrastructure this year more than expected. Google on the 4th guided this year's capital expenditures at $175 billion to $185 billion (about 258 trillion to 272 trillion won), roughly double last year's $91.4 billion, while Amazon said in its earnings release the previous day that capital expenditures for expanding AI data centers and other projects would rise from $150 billion last year to $200 billion (294 trillion won) this year.
Ross Mayfield, an investment strategist at investment firm Baird, said, "We see evidence that there is real demand for AI products, that there are tangible business plans, and that there is a need to make massive expenditure to achieve them," adding, "When we see selling like we have recently, a certain group emerges to buy the dip at a level of support."