Dow Jones Hits Record High as SpaceX Partners with Nvidia Corp.

The Dow Jones Industrial Average achieved a record closing high on Wednesday, gaining 263.24 points, or 0.49%. This marks the index's fifth consecutive positive day, a trend driven by strong corporate earnings and optimism surrounding artificial intelligence.

Nvidia Corp. shares rose more than 3% after Elon Musk announced that Space Exploration Technologies Corp. will exclusively use Nvidia Corp. chips for its AI infrastructure. Despite the Dow's record, the S&P 500 and Nasdaq Composite declined as investors took profits from other technology stocks, including Alphabet and Advanced Micro Devices.

Amidst the market rally, Federal Reserve Governor Lisa Cook warned of potential interest rate hikes if inflation does not continue to decline. She noted that five years of above-target inflation increase the risk that higher prices may become entrenched in price- and wage-setting behavior, which would create a level of persistence that is harder for the central bank to attack.