Investor enthusiasm for AI expected to boost Big Tech stocks this year, with other sectors also seeing gains. Industrials, Materials, Energy, and Consumer Staples have outperformed the market. Small-cap Russell 2000 up 8%, outperforming S&P 500. Analysts bullish on S&P 500, with potential gains to 8,100.

Rotation seen in markets, not away from tech but broadening exposure. Strategists optimistic on earnings, driving shares of Goldman Sachs and Morgan Stanley higher. Taiwan Semiconductor’s strong results lift semiconductor stocks, fueling AI cycle optimism. Micron, ASML, and Applied Materials up at least 25% year-to-date.

AI chip performance indicates tech and AI to lead market. Software stocks like Microsoft, Salesforce, and ServiceNow face disruption from AI, impacting investor sentiment. Barclays head of US equity strategy predicts tech and AI core of market this year, despite increased scrutiny. Test will be if software stocks can adapt to AI disruption. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping by 2.5% and the Dow Jones Industrial Average falling by 800 points. Investors are concerned about rising inflation and its impact on future interest rate hikes by the Federal Reserve.

2. The latest unemployment report shows a slight increase in jobless claims, with 230,000 new claims filed last week. This is higher than expected and indicates potential challenges in the labor market recovery as businesses continue to navigate the ongoing effects of the pandemic.

3. A new study has found that 75% of Americans are worried about the rising cost of living, with inflation hitting a 30-year high. The cost of groceries, gas, and housing has significantly increased, putting financial strain on many households across the country.

Read more at Yahoo Finance: Wall Street sees stock market gains beyond tech