Dow and S&P 500 Close in Records with AI Results and Hope of Agreement in the Middle East

Dow Jones and S&P 500 closed Wednesday's session on historic records, with Dow rising almost 1,000 points on a day marked by investor optimism with the robust profits of large technology companies focused on artificial intelligence (IA) and signs of progress in peace negotiations in the Middle East.

The Dow Jones index advanced 0.9%, closing above the 39,000 point mark for the first time. The S&P 500 also renewed its maximum, with a high of 1.2%, pulled by actions of semiconductors and cloud service providers, who reported quarterly results above expectations. Analysts highlighted that the demand for AI solutions continues to generate significant revenues for companies such as Nvidia, Microsoft and Alphabet, which led the day's gains.

In the geopolitical scenario, the possible signing of an agreement between Israel and Hamas brought relief to markets, reducing the risk premium on oil and favoring sectors such as aviation and tourism. Brent's barrel dropped more than 2%, which also contributed to his appetite for risky assets.

The combination of solid corporate results and the prospect of a slowdown in regional conflicts strengthened investors' confidence, which now turn to the next inflation rates in the United States to calibrate expectations regarding the cycle of interest cuts by the Federal Reserve.