Wall St Week Ahead: Artificial intelligence gives real boost to U.S. stock market

Artificial intelligence (AI) is boosting the US stock market, with megacap stocks such as Microsoft, Google parent Alphabet, Nvidia, Apple and Meta platforms responsible for the majority of the S&P 500’s 9% year-to-date return. About 25% to 50% of the gains are due to optimism around AI, according to DataTrek Research. Societe Generale has predicted removing the top 20 stocks linked with AI from the S&P 500 would reduce the index’s performance by 10%. Analysts view AI as a major driver of future productivity and profit, citing generative AI as producing margin-expanding productivity gains.

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