Rallies and tech 'revolution' — all powered by AI

Investors continue to show an insatiable appetite for artificial intelligence, despite concerns regarding the inflated valuations in the sector. On Tuesday, major U.S. indices, including the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, achieved new intraday records, largely driven by gains in technology stocks. Nvidia experienced a significant boost, rising nearly 5%, while Microsoft saw an increase of approximately 2%. Both companies achieved a remarkable milestone with their market capitalizations surpassing $4 trillion, marking a first for Apple, although it finished just short of that level by the close of trading. In a notable move, Nvidia unveiled plans for a monumental $1 trillion investment in Nokia, which the Finnish telecom giant stated will support its AI initiatives. For those familiar with Nokia's legacy in mobile phones, it's noteworthy that the company now primarily focuses on cellular equipment. Meanwhile, Microsoft, holding a 27% stake in OpenAI's for-profit division, stands poised to reap substantial benefits if AI solidifies its position as a sustainable and profitable business. OpenAI recently announced the completion of its restructuring, which sees its nonprofit arm retain a controlling interest in its for-profit side. Investors in the tech sector are optimistic, with Ark Invest's Cathie Wood asserting, "If our expectations for AI are correct, we are just at the dawn of a technological revolution." Additionally, U.S. President Donald Trump hinted at potential tariff reductions on China, including duties linked to fentanyl, and announced plans to discuss agricultural issues and Nvidia's Blackwell chips with Chinese leader Xi Jinping. In other developments, PayPal partnered with OpenAI to integrate its services into ChatGPT. SK Hynix reported a remarkable 62% surge in third-quarter operating profit, reaching 11.38 trillion won ($7.94 billion), driven by robust demand for AI-enhanced memory solutions. The company's supply for memory chips for 2026 is already sold out. As U.S. markets set record highs, with Apple and Microsoft achieving valuations over $4 trillion, Asia-Pacific markets also saw gains, with Japan's Nikkei 225 soaring over 2% to surpass the 51,000 mark for the first time. In a contrasting trend, gold prices have entered correction territory, dropping below $4,000 after exceeding $4,300 just a week prior. Analysts are evaluating the precious metal's recent fluctuations and projecting its future trajectory, especially as the Federal Reserve prepares for a potential rate cut this week, with nearly universal expectations for a 25 basis point reduction in the federal funds rate.