Wall Street opened higher in early trading Thursday, supported by gains from heavyweight tech companies such as Nvidia and Amazon on recent concerns about artificial intelligence (AI).
Nvidia shares rose 1.6% after the world's most valuable company signed a deal to sell millions of its current and future AI chips to Meta Platforms.
The situation pushed Meta shares up 0.6%.
Meanwhile, Sandisk, Western Digital and Seagate Technology Holdings rose between 1.7% and 4.4%, respectively, adding to recent gains on massive AI demand for their storage technology.
Amazon shares also rose 1.8% and Microsoft added 0.7% yesterday.
AI stocks had previously fallen as investors became concerned about high valuations and the length of time it would take for AI investments to boost their earnings growth.
At the same time, the S&P 500 software and services sector also recorded a 1.1% recovery after suffering a decline earlier this month.
This increase was driven by the encouraging performance of Cadence Design Systems, which reported fourth-quarter earnings that exceeded market expectations.
However, a different situation was experienced by Palo Alto Networks, which saw its shares plunge 6.8% following the company's action to revise and lower its annual profit forecast.
Turning to the movement of the main indices, the S&P 500 rose 0.56% to 6,881.31 points, the Dow Jones jumped 0.26% to 49,662.66 points, while the Nasdaq Composite increased 0.78% to 22,753.64 points.
Trading volume on the US exchange was seen moving slowly with $16.8 billion in shares traded compared to an average of $20.7 billion in shares over the previous 20 sessions.
