Potential interest rate cuts this year boosted demand for technology-related stocks.

Amazon hit a market value of $2 trillion for the first time on Wednesday, becoming the fifth US company to surpass that level, as optimism around artificial intelligence (AI) and potential interest rate cuts this year boosted demand for technology-related stocks.

Shares rose 3.4% to $192.7, giving the e-commerce giant a market value of more than $2 trillion and putting it in the same group as tech heavyweights such as Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet.

US stock indexes have posted robust gains this year due to relentless enthusiasm around AI, optimism about the resilience of the US economy, and potential easing of interest rates by the Federal Reserve.

Wall Street was trading near record levels, driven largely by mega-cap stocks like Nvidia and Amazon, whose future cash flows will benefit from lower interest rates.

Amazon shares, which were added to the Dow Jones industry index in February, are up more than 26% this year. The company became the fifth-largest US company by market value in February, after Nvidia rose one spot.

Amazon Web Services is the world's largest cloud services provider, and the Amazon unit's growth has returned after a decline last year, thanks to the growing adoption of AI technologies.

The company has also invested in AI startup Anthropic and robotics firm Figure, as it seeks to capitalize on the AI boom.

Late last year, Amazon introduced a new generation of chips custom-designed for data centers, aimed at applications for training machine learning and generative AI.