U.S. stocks rose on Wednesday after tech companies reported better-than-expected revenue boosted by using artificial intelligence (AI).
Stock Indexes Climb
The three major stock indexes, which measure how stocks perform, were up early Wednesday.
The S&P 500 climbed 0.4 percent in morning trading while the Dow Jones Industrial Average went up 181 points (0.4 percent) as of 10:45 a.m. ET. The Nasdaq composite also rose 0.1 percent.
This year has been full of record highs for Wall Street with the S&P 500 on track to set an all-time high for the 56th time this year after it rose 10 times in the last 11 days. It’s looking to be one of the stock index’s best years of the millennium.
Meanwhile, in the bond market, the yield on the 10-year Treasury climbed to 4.22 percent Wednesday from 4.23 percent late Tuesday.
The higher the yields on long-term U.S. Treasuries, the more confidence investors have in the future of the economy. On the other hand, high long-term yields can also signal an expectation of rising inflation.
Salesforce and Marvell Technology Report Gains
This week, tech companies Salesforce and Marvell Technology reported gains for the latest quarter fueled by AI.
Salesforce, a firm that helps businesses manage their customers, reported stronger revenue for its third quarter than analysts expected. The company earned $9.44 billion in revenue, $100 million more than expected. Salesforce’s profit did, however, fall slightly below expectations at $2.41 per share as opposed to the $2.44 per share that experts predicted.
Salesforce’s stock then climbed 9.2 percent on Wednesday.
Meanwhile, Marvell Technology, a semiconductor supplier, saw its stock rise 21.9 percent Wednesday, after releasing a better-than-expected earnings report. The company saw $1.80 billion, plus or minus 5 percent, in revenue, $150 million more than experts predicted. Marvell Technology’s profit also beat analysts’ expectations of 41 cents per share at 43 cents per share.
“Marvell is capitalizing on a massive artificial intelligence chip opportunity with a burgeoning custom accelerator portfolio and a dominant optical chip position,” a message from Morningstar analysts posted online read.
AI Boosts Company Gains
Both Salesforce and Marvell Technology credited AI for helping boost their revenue.
Salesforce’s co-founder and CEO Marc Benioff emphasized the company’s AI offering for customers, saying “the rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale.”
Meanwhile, Marvell Technology CEO Matt Murphy, said, “We are seeing strong custom AI demand continue into the fourth quarter and have secured supply chain capacity.”
This article includes reporting from The Associated Press.
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