Stock Market News Today: AI Spending Drives Dow to 50,000 Milestone

, 2026, fueled by optimism around AI spending. Software and data services stocks experienced a selloff as investors questioned the long-term profitability of AI investments, . Major tech firms including Amazon, Microsoft, , . The broader market reacted positively to infrastructure spending on AI, but software and subscription services stocks saw significant losses as investors shifted capital toward physical components like chips and energy solutions. Despite the rally, , and investors are shifting capital toward smaller stocks and Main Street companies rather than large Wall Street firms.

The U.S. stock market took a dramatic turn on February 6, 2026, as the Dow Jones Industrial Average crossed the symbolic 50,000 mark for the first time in its 130-year history. The surge came after a week of volatility driven by fears over the economic implications of the AI boom and its impact on traditional software and services. Amid the uncertainty, investors are increasingly focusing on the physical infrastructure required to support AI growth, sending semiconductor and energy stocks higher. Nvidia, in particular, soared nearly 8% as its Blackwell B200 platform gained traction as the industry standard for AI computing.

Why Is AI Spending Driving the Stock Market Today?

Investors are watching closely as Big Tech companies like Amazon, Microsoft, and Meta announce massive AI spending plans. Amazon alone is allocating $200 billion toward data centers and AI infrastructure, signaling the start of an infrastructure ramp-up that could last for years. This spending is expected to drive demand for chips, servers, and energy solutions, all of which have seen renewed investor interest.

The broader market has reacted with a mix of optimism and caution. , many software and data services stocks lost value as investors worried about the disruptive potential of AI. This shift reflects a broader reallocation of capital away from subscription-based software models and into the physical infrastructure required to support AI applications.

What Should Investors Watch for in the AI-Driven Market?

As the AI investment cycle accelerates, the market is beginning to show signs of a structural shift. The Dow's inclusion of companies like Nvidia and Sherwin-Williams in early 2026 highlights the growing relevance of AI and home improvement sectors in the blue-chip index. Meanwhile, the selloff in traditional software stocks underscores the uncertainty surrounding how AI will reshape the earnings model for many tech firms.

Investors should pay close attention to the performance of companies that provide the physical components and energy needed to support AI systems. Semiconductor firms like Nvidia and Broadcom are already benefiting, but energy and industrial stocks could see further gains as data center demand continues to rise. On the other hand, private credit firms and software companies that rely on AI-driven data analysis are facing heightened pressure as investors question the long-term profitability of these models.

For now, the market is balancing optimism around the AI future with caution about its economic and labor implications. , the coming months will likely bring more volatility as investors navigate the evolving landscape.