On January 28, the financial landscape witnessed a vibrant shift as all three major stock indices turned green, akin to a fireworks display that captivates the attention of investors. The Nasdaq index surged impressively by 2.03%, highlighting the thriving vitality of the technology sector. The S&P 500 managed a solid upward trend with a 0.92% increase, reinforcing a positive outlook across the market. Meanwhile, the Dow Jones Industrial Average contributed with a modest gain of 0.31%, adding to the momentum of this bullish trend.

In this rally of the American stock market, technology stocks undoubtedly took center stage, with artificial intelligence (AI) emerging as the key driver behind this technological festivity. NVIDIA stood out as a stellar performer, experiencing a jaw-dropping surge of 8.82% in its stock price, which translated to an astonishing market capitalization increase of approximately 1.87 trillion RMB. This remarkable figure astonished financial circles and showcased a vigorous wave of wealth accumulation. Many retail investors astutely sensed opportunity, jumping in at the right time, revealing a collective confidence in the future of the market. Though other tech giants like Apple, Microsoft, Meta, Google, and Amazon didn't rise at the same staggering rate as NVIDIA, they still displayed strong performance, propelling the momentum of technology stocks and giving the market a buoyant atmosphere reminiscent of a spring awakening.

The surge in AI technology plays a pivotal role in this context, acting as the core reason for the robust increase in technology stocks. In today's digital era, the evolution of AI technology is nothing short of revolutionary, permeating various domains from intelligent voice assistants and autonomous driving to image recognition and big data analytics. Consequently, the demand for computational power is witnessing an exponential leap to support these advancements. NVIDIA, a leading figure in the AI chip industry, has seen its GPU technology become indispensable in AI training and inference, effectively positioning itself as the "heart" of the AI era. The stellar performance of its chips meets the vast processing and complex calculation needs of AI models, providing a solid hardware foundation that propels AI technology forward and driving NVIDIA's substantial profits amid this AI revolution.

Recently, the emergence of a new model—DeepSeek—has captured widespread attention in the market. While it may inject some short-term volatility into the markets, akin to ripples spreading across a tranquil pond after a stone is tossed in, its long-term implications herald a boon for the entire AI industry. The DeepSeek model has the potential to significantly lower the cost of AI development and applications, allowing more enterprises and developers to make inroads into the AI domain, thus broadening the application spectrum of AI technologies and fostering their integration into various societal facets. Additionally, it is poised to enhance productivity and create greater value for companies, driving the entire industry toward new heights. Bank of America Merrill Lynch has even boldly predicted that Apple holds a remarkable advantage in edge AI technology and stands to gain in the long run from the continued advancements in AI. Other tech firms are rapidly recognizing the enormous commercial opportunities within the AI sector, leading to an intensifying global race as major players strive for dominance in this rapidly evolving field.

Moreover, encouraging macroeconomic data bolstered the upward trajectory of U.S. stocks, further strengthening market confidence. Positive news regarding U.S. business equipment orders, especially excluding transportation durable goods like aircrafts, indicated a robust outlook. Behind this data is a growing confidence among U.S. enterprises regarding investments—a willingness to spend on business equipment underscores their optimistic projections for the future market landscape and readiness to invest in expanding production and enhancing technological prowess. Additionally, although international crude oil prices ticked upward, which could create pressure on inflation expectations, the overall impact on market sentiment remained limited. Other macroeconomic indicators, such as employment and inflation data, have also shown relative stability, with solid job data ensuring a stable income for consumers, thereby supporting the consumer market, while measured inflation data provides a conducive environment for steady economic growth, further emboldening optimism regarding future economic dynamics.

However, amid this optimistic market sentiment, it's crucial not to overlook the lurking risks. Geopolitical tensions loom like a sword of Damocles, with the potential to impact the market depending on shifts in international dynamics. Additionally, inflation risk must be taken seriously—should inflation spiral out of control, it could trigger a cascade of economic issues, affecting corporate costs and profits, and consequently disrupting the stock market.

In summary, the latest surge in U.S. stocks can largely be attributed to advancements in AI technology which serve as the main driving force. The robust performances of technology and Chinese concept stocks reflect a relatively optimistic expectation for future economic growth. As AI technology emerges as a cornerstone of future technological development and economic expansion, the potential is immense within its associated industries. Nevertheless, in this investment exuberance, it is vital for investors to remain cautious and pay close attention to market patterns, making informed investment decisions in an environment filled with both opportunities and challenges.