S&P 500 Poised for New Peaks Fueled by Continued AI Investment Excitement

August 5, 2026 economy24

Futures rose on Wednesday as recent earnings reports reflected robust demand for artificial intelligence and related expenditures. SpaceX disclosed AI investments that were higher than anticipated, overshadowing its generally optimistic results, while Nvidia Corp. experienced a surge after Elon Musk commended its computing efforts.

S&P 500 futures were 0.4% higher as of 7:52 a.m. in New York, with Nasdaq 100 contracts holding steady. Should these pre-market gains continue, the S&P 500 Index is poised to achieve a record close for the second consecutive day. West Texas Intermediate crude increased by 0.3%, stabilizing around $76 per barrel, following President Donald Trump’s comments in Los Angeles on Tuesday night about positive progress in discussions with Iran.

“The prevailing evidence supports a bullish outlook,” mentioned Keith Lerner, Chief Investment Officer at Truist Advisory Services, in a note. “Earnings remain our guiding light, the economy is strong, market participation is growing, and valuation excesses have largely been addressed.”

Later today, watch for earnings reports from memory chipmakers Sandisk and Western Digital, both of which have significantly driven the benchmark index’s gains this year.

In pre-market trading, SpaceX shares were 11% down as investors evaluated the results and contemplated the forthcoming share unlock. The options market forecasted that SpaceX stock would act like a meme stock post-earnings, with potential movements exceeding 14% in either direction.

“The company has implications across the entire economy,” noted Greg Halter, Research Director at Carnegie Investment Counsel, referring to SpaceX’s data centers as well as its space initiatives and rocket launches.

Later today, Sandisk is expected to report exceptional profits alongside a positive outlook, driven by commitments from major technology companies like Amazon.com and Microsoft Corp, who have vowed to continue extensive investments in AI computing infrastructure. The stock has shown considerable volatility, emerging as the top performer in the S&P 500 this year with an impressive 501% increase through Tuesday’s close.

In other earnings news, Advanced Micro Devices experienced a decline after providing a disappointing sales forecast.

Among the 372 S&P 500 companies that reported through Tuesday, 87% exceeded analysts’ earnings-per-share predictions, while 69% surpassed sales forecasts.

Additionally, in tech news, Yann LeCun, former chief AI scientist at Meta Platforms Inc., is joining a new venture capital firm focused on investing in AI startups.