Wall Street turned to a familiar playbook this week as Nvidia and other artificial intelligence-linked stocks soared in the latest rotation back to risk.
The Nasdaq 100 was up 1.8%, on track to end the day with a 2025 gain of 1.1%. The S&P 500 was up 1%, even though just under half of its member stocks were falling.
Among its leaders were the usual AI suspects like Super Micro Computer, up 15%, Palantir Technologies, up 9.2%, and Vistra, up 6.6%. Nvidia was also leading the Magnificent Seven group with a gain of nearly 6%.
The iShares Semiconductor ETF was up 3%, while the Invesco S&P 500 High Beta ETF was up 2.8%. The Invesco S&P 500 Low Volatility ETF was down 0.6%.
AI stocks got a boost as Wall Street reacted to announcements out of Saudi Arabia about its investment in AI.
All these moves highlight a massive shift in momentum that has occurred as tariff worries waned, at least for now. The rollback of the bulk of China tariffs was just the latest green light for those chasing AI and momentum stocks.