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AI Trade Caps 2025 as S&P 500 Heads for 17% Gain on Final Day

A drop in jobless claims to 199,000 is complicating the case for quicker rate cuts.

Overview

  • U.S. stocks opened slightly lower on Dec. 31, leaving the S&P 500 on track for a fourth straight daily decline even as it locks in a third year of double‑digit gains.
  • An AI-driven advance defined 2025, with chipmakers and data‑infrastructure groups leading and data‑storage names ranking among the S&P 500’s top performers.
  • Major cloud providers have reportedly pledged more than $440 billion over the next year to expand AI capacity, lifting suppliers tied to data centers and storage.
  • Initial jobless claims fell by 16,000 to 199,000 in the week ended Dec. 27 and continuing claims slipped to 1.866 million, extending a multiweek decline.
  • Gold and silver retreated after another CME margin increase following record highs, while Nvidia rose on a larger TSMC order tied to demand for its H200 AI chip.