Wall Street ends higher on revived AI momentum

On Tuesday, US stocks surged higher due to an AI-driven tech rally as the third-quarter reporting season intensified. The tech-heavy Nasdaq led the gains, being fueled by the buzz surrounding Anthropic's upcoming initial public offering. Chip stocks also saw a boost, marking the third consecutive day of gains. Concerns over debt-funded spending, exacerbated by rising borrowing costs, had previously weighed on the AI sector this month.

Meta increased its largest-ever equity fundraising to $97.5 billion, causing its shares to drop 1.6 percent. Economic data indicated rising new orders for computers and peripheral equipment, suggesting strong AI-related spending. Nearly half of S&P 500 companies had reported third-quarter results, with 83 percent delivering better-than-expected results.

Boeing declined 10.7 percent following a larger-than-expected loss, while Xylem fell 14.2 percent after cutting its full-year forecasts. UPS rose 5.8 percent after raising its annual revenue and profit forecasts. Sherwin-Williams' quarterly profit miss led to a 2.7 percent drop in its stock. Royal Caribbean gained 5.5 percent after raising its full-year profit forecast.

Microsoft and Alphabet's results were expected on Wednesday, while Amazon.com was due to report on Thursday. The Federal Reserve met on Tuesday for its penultimate meeting of the year, with expectations of maintaining the fed funds target rate in the 3.75 percent to 4 percent range. The Dow Jones Industrial Average rose 0.03 percent to 52,377.57, the S&P 500 gained 0.60 percent to 7,722.60, and the Nasdaq Composite increased 1.18 percent to 26,477.81.

Technology led the gainers, while energy shares suffered the steepest percentage decline due to easing crude prices and attention on Middle East peace negotiations.