Stocks Rally on AI Spending Optimism

Market Overview - Stock indexes are moving higher, with the S&P 500 reaching a new all-time high and the Nasdaq 100 hitting a 3-month high, driven by strength in chipmakers and AI infrastructure stocks [4][5] - The S&P 500 Index is up +0.28%, the Dow Jones is up +0.04%, and the Nasdaq 100 is up +0.81% [5] Earnings Reports - ASML Holding NV reported record Q4 bookings of 13.2 billion euros, significantly above the consensus of 6.85 billion euros, boosting optimism in AI spending [4] - 81% of the 83 S&P 500 companies that have reported earnings thus far have beaten expectations, with S&P earnings growth expected to rise by +8.4% in Q4 [8] - F5 Inc. reported Q4 net revenue of $822.5 million, exceeding the consensus of $758.8 million, and raised its full-year revenue forecast [14] - Starbucks reported Q1 US comparable same-store sales growth of +4%, stronger than the consensus of +1.88% [14] Sector Performance - Chipmakers and AI infrastructure stocks are rallying, with Seagate Technology Holdings up more than +17%, Intel and Sandisk up more than +8%, and Texas Instruments up more than +6% [13] - Amphenol is down more than -13% after a disappointing sales forecast, while Textron is down more than -7% due to a lower-than-expected EPS forecast [16][17] Economic Indicators - The average 30-year fixed mortgage rate rose to 6.24%, up +8 basis points from the previous week, with mortgage applications falling -8.5% [2] - Initial weekly unemployment claims are expected to increase by 5,000 to 205,000, and the November trade deficit is anticipated to widen to -$44.10 billion [7]