These days, you can't spell S&P 500 without A and I. The staid utilities sector led the day on Tuesday, but perhaps for a surprising reason: They are viewed as key stocks powering the artificial intelligence revolution. Some investors feel that power companies will ride higher as data centers drive what could be the first big jump in U.S. electricity demand in years. As if the market needed more reasons to be thinking about AI with chip-maker Nvidia on tap to report earnings on Wednesday. Even the private markets are clamoring to get in, highlighted by a giant $7.5 billion private debt financing for a company to buy more chips. Beyond utilities, however, there wasn't much happening. Bank stocks staged a bit of a comeback after Monday's drop, with JPMorgan Chase's confident projections for its consumer business bleeding through to the sector. The KBW Nasdaq Bank index was up 1.1%. A Federal Reserve survey of Americans found that 72% of adults felt they were doing at least okay financially in 2023, though it was down from a recent peak of 78% in 2021. Overall, the S&P 500 had just a 0.3% gain, and the Nasdaq Composite was up 0.2%. The Dow Jones Industrial Average added just 66 points, or 0.2%. Here’s what else Heard on the Street was watching: The Unlikely Stocks That Became a Hot Bet on AI, How Wall Street Lenders Are Betting Big on the AI Boom, Crypto Takes Aim At 2024 Elections, Microsoft Stock On Pace For Record Close
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