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Amazon’s Market Value Reaches $2 Trillion Milestone

Amazon’s Market Value Reaches $2 Trillion Milestone

Amazon reached a $2 trillion market value for the first time on Wednesday, joining the ranks of other U.S. companies like Microsoft and Apple, among others.

The increase was driven by positive sentiment towards artificial intelligence and potential interest rate cuts. The stock price climbed 3.9% to $193.61, pushing the e-commerce giant’s market capitalisation over $2 trillion.

The strong performance of technology-related stocks, fuelled by optimism around AI, economic resilience, and potential Fed rate cuts, has boosted U.S. stock indexes this year. Nvidia and Amazon have been key contributors to Wall Street’s record highs, with their future earnings expected to benefit from lower interest rates. Amazon’s market value surged over 26%, making it the fifth largest U.S. company by market capitalisation.

Amazon Web Services, the leading cloud services provider globally, has seen growth rebound due to increased adoption of AI technologies. Last year, Amazon introduced new custom-designed chips for data centres, aimed at enhancing machine-learning training and generative AI applications. Also, Amazon is preparing to introduce a discount store in an effort to compete with Temu and Shein.

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