Amazon hits $2 trillion in valuation on AI fervor, rate cut bets

(Reuters) -Amazon.com Inc hit $2 trillion in market value for the first time on Wednesday, becoming the fifth U.S. company to surpass that level as optimism around artificial intelligence and potential interest rate cuts this year drove demand for technology-related stocks.

The stock rose 3.9% to $193.61, giving the e-commerce giant a market value of over $2 trillion and putting it in the same club as technology heavyweights Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet.

U.S. stock indexes have recorded robust gains this year on relentless enthusiasm around AI, optimism around resilience in the U.S. economy and potential easing of interest rates from the Federal Reserve.

Wall Street was trading near record levels, largely powered by megacap stocks such as Nvidia and Amazon, whose future cash flows stand to benefit from lower interest rates.

Full story at Yahoo News.