AI Investment Boom Overshadows Rate Hike Concerns as Wall Street Refocuses on Hyperscaler Spending

Wall Street took a step back from interest-rate and inflation concerns Thursday to refocus on a powerful investment theme: the soaring capital spending by major technology companies building out artificial intelligence infrastructure. Despite the Federal Reserve's first interest-rate increase in three years—raising fears that higher borrowing costs could dampen technology stocks—investors bid up shares of companies tied to the AI boom, signaling confidence that the massive spending surge by Amazon, Google, Microsoft, Meta, and Oracle will sustain the sector regardless of macroeconomic headwinds.