S&P 500 hits record high as chipmakers surge: Tech triumph | international business news
S&P 500 rose by one record high Friday’s close was the first in two years, marking the beginning of a bull market since October 2022. The climb was led by a strong rally chip manufacturer And tech giantReflecting investors’ optimism toward artificial intelligence and strong corporate earnings.
Chip makers lead the charge: Chip stocks surged significantly, driven by Super Micro Computer’s optimistic second-quarter profit forecast. NVIDIA and Advanced Micro Devices saw substantial trading, pushing the Philadelphia SE Semiconductor Index and the S&P 500 Information Technology Sector Index to record highs. In particular, Nvidia rose 4.2%, and AMD rose more than 7%, sending shares of the super microcomputer skyrocketed 36%.
Tech giants soar: Market leaders Microsoft and Apple each gained more than 1%. The broader tech sector’s rally was further boosted by Taiwan Semiconductor Manufacturing Co’s forecast of rising demand for high-end AI chips, reinforcing the important role of technology in driving the market.
“Tech stocks continue to lead the market,” said Adam Sirhan of 50 Park Investments. “You have explosive action in SMCI, in Nvidia, in Broadcom, in semiconductors in general, and that remains bullish for the market,” he said.
Broad Market Benefits: The Nasdaq jumped 1.70%, while the Dow Jones Industrial Average gained 1.05%. Trading volume increased, indicating increased market activity. However, caution remained as investors lowered their expectations regarding an interest rate cut by the Federal Reserve.
Financials and Airlines in Focus: Beyond the tech, Travelers Cos. and Spirit Airlines captured the market’s attention. Travelers’ fourth-quarter profit more than doubled, boosting its shares, while Spirit Airlines shares rose as it explored options to refinance its debt.
Global Reference: While US markets flourished, especially in the technology sector, European markets experienced a downturn due to concerns over slow growth and high interest rates. This paradox highlights the unique market dynamics and regional influences shaping global financial trends.
looking ahead: The future trajectory of the market depends on the upcoming corporate earnings reports. The S&P 500 could lose momentum if companies reporting quarterly results in the next few weeks fail to justify relatively high valuations. Netflix reported on Tuesday, followed by Tesla on Wednesday.
“This new record high for the S&P 500 is sustainable as long as earnings meet expectations,” said Steve Sosnik, chief strategist at Interactive Brokers.
“If, on the other hand, we find that the market has either got ahead of itself… or we get guidance from some of these companies that doesn’t match the bullish sentiment in their pricing, then that’s a “There could be a real risk.”
Any discrepancy between market expectations and actual corporate performance or guidance could bring volatility and risk to the current bullish sentiment.
(with inputs from agencies)
Chip makers lead the charge: Chip stocks surged significantly, driven by Super Micro Computer’s optimistic second-quarter profit forecast. NVIDIA and Advanced Micro Devices saw substantial trading, pushing the Philadelphia SE Semiconductor Index and the S&P 500 Information Technology Sector Index to record highs. In particular, Nvidia rose 4.2%, and AMD rose more than 7%, sending shares of the super microcomputer skyrocketed 36%.
Tech giants soar: Market leaders Microsoft and Apple each gained more than 1%. The broader tech sector’s rally was further boosted by Taiwan Semiconductor Manufacturing Co’s forecast of rising demand for high-end AI chips, reinforcing the important role of technology in driving the market.
“Tech stocks continue to lead the market,” said Adam Sirhan of 50 Park Investments. “You have explosive action in SMCI, in Nvidia, in Broadcom, in semiconductors in general, and that remains bullish for the market,” he said.
Broad Market Benefits: The Nasdaq jumped 1.70%, while the Dow Jones Industrial Average gained 1.05%. Trading volume increased, indicating increased market activity. However, caution remained as investors lowered their expectations regarding an interest rate cut by the Federal Reserve.
Financials and Airlines in Focus: Beyond the tech, Travelers Cos. and Spirit Airlines captured the market’s attention. Travelers’ fourth-quarter profit more than doubled, boosting its shares, while Spirit Airlines shares rose as it explored options to refinance its debt.
Global Reference: While US markets flourished, especially in the technology sector, European markets experienced a downturn due to concerns over slow growth and high interest rates. This paradox highlights the unique market dynamics and regional influences shaping global financial trends.
looking ahead: The future trajectory of the market depends on the upcoming corporate earnings reports. The S&P 500 could lose momentum if companies reporting quarterly results in the next few weeks fail to justify relatively high valuations. Netflix reported on Tuesday, followed by Tesla on Wednesday.
“This new record high for the S&P 500 is sustainable as long as earnings meet expectations,” said Steve Sosnik, chief strategist at Interactive Brokers.
“If, on the other hand, we find that the market has either got ahead of itself… or we get guidance from some of these companies that doesn’t match the bullish sentiment in their pricing, then that’s a “There could be a real risk.”
Any discrepancy between market expectations and actual corporate performance or guidance could bring volatility and risk to the current bullish sentiment.
(with inputs from agencies)
