US stocks edged higher on Wednesday, with the S&P 500 breaching the 7,000-point mark for the first time, underscoring sustained investor optimism around artificial intelligence, resilient Big Tech earnings prospects and expectations of eventual monetary easing.The benchmark index rose 0.3 per cent, extending gains after its latest record close. The Dow Jones Industrial Average advanced 114 points, or 0.2 per cent, while the Nasdaq Composite climbed 0.5 per cent in early trade, AP reported.The pace of the S&P 500’s climb has accelerated sharply in recent years. It took nearly three years for the index to rise from 4,000 to 5,000, but only about nine months to move from 5,000 to 6,000, a level reached in November 2024. The swift push past 7,000 reflects mounting confidence in US corporate earnings and the economy’s ability to withstand tighter financial conditions.Gains on Wednesday were led by heavyweight technology stocks after Dutch chip equipment maker ASML issued a 2026 revenue forecast that exceeded market expectations, reinforcing confidence in sustained demand linked to artificial intelligence.ASML’s customers have become more optimistic about the medium-term outlook, driven largely by expectations for the “sustainability” of AI-related demand, chief executive Christophe Fouquet said, helping ease concerns that the AI rally could be approaching bubble territory.Nvidia, widely seen as the bellwether of the AI boom, rose 1.2 per cent, making it the single biggest contributor to the S&P 500’s advance. ASML’s US-listed shares were little changed.Elsewhere, stock moves were mixed following fresh earnings updates. Starbucks jumped 4.9 per cent after quarterly revenue beat expectations, aided in part by strong demand for a viral promotional cup, even though profits for the end of 2025 missed estimates.In contrast, Amphenol slid 14.9 per cent despite reporting stronger-than-expected profit and revenue growth, as elevated expectations weighed on the stock after a sharp rally earlier this year.Analysts said companies remain under pressure to deliver robust earnings growth following the market’s record-setting run, with stock prices increasingly vulnerable to any disappointment.In currency markets, the US dollar stabilised, rising about 0.3 per cent against the British pound and Japanese yen, a day after a broader dollar index fell to its weakest level since early 2022.The dollar has generally weakened since President Donald Trump returned to the White House last year, with losses accelerating after renewed tariff threats against parts of Europe earlier this month. Those risks, combined with concerns over US government debt, have periodically prompted global investors to reduce exposure to US assets — a trend often referred to as “Sell America.”In the bond market, Treasury yields were steady ahead of the Federal Reserve’s interest rate decision later in the day. The 10-year yield held at 4.24 per cent. The Fed is widely expected to keep rates unchanged, balancing persistent inflation against growth risks.Commodities remained firm as investors sought safe havens. Gold added another 3.5 per cent to $5,258.50 an ounce, after crossing the $5,000 mark for the first time earlier this week.Overseas markets were mixed. European indices slipped, while Asian stocks posted strong gains. South Korea’s Kospi rose 1.7 per cent to a fresh record, supported by a sharp jump in SK Hynix, while Hong Kong’s Hang Seng rallied 2.6 per cent.
