S&P 500 Hits Record High as Chipmakers Surge: Tech Triumph | International Business News

The S&P 500 soared to a record high close for the first time in two years on Friday, marking the start of a bull market since October 2022. The climb was led by a robust rally in chipmakers and tech giants, reflecting investor optimism around artificial intelligence and robust corporate earnings.
Chipmakers lead the charge: Chip stocks experienced a significant upswing, driven by Super Micro Computer’s optimistic second-quarter profit forecast.Shares of Nvidia and Advanced Micro Devices witnessed substantial trading, pushing the Philadelphia SE Semiconductor index and the S&P 500 information technology sector index to record highs. Notably, Nvidia surged 4.2%, and AMD ascended over 7%, with Super Micro Computer’s shares skyrocketing 36%.
Tech giants ascend: Market leaders Microsoft and Apple each enjoyed gains of more than 1%. The broader tech sector’s rally was further fueled by Taiwan Semiconductor Manufacturing Company’s forecast of surging demand for high-end AI chips, cementing tech’s pivotal role in driving the market forward.
“The tech stocks are continuing to lead the market higher,” said Adam Sarhan 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 gains: The Nasdaq leaped by 1.70%, while the Dow Jones Industrial Average increased by 1.05%. Trading volumes surged, reflecting heightened market activity. However, caution lingered as investors tempered their expectations regarding the Federal Reserve’s interest rate cuts.
Financials and airlines in focus: Beyond tech, Travelers Cos and Spirit Airlines caught the market’s attention. Travelers’ fourth-quarter profit more than doubled, propelling its shares, while Spirit Airlines’ shares gained as it explored options to refinance its debt.
Global context: While US markets flourished, particularly in the tech sector, European markets experienced a downturn, hampered by concerns over slow growth and high interest rates. This contrast highlights the unique market dynamics and sectoral influences shaping global financial trends.
Looking ahead: The market’s future trajectory hinges on the upcoming corporate earnings reports. The S&P 500 could lose steam if companies reporting quarterly results over the next few weeks fail to justify relatively high valuations. Netflix reports on Tuesday, followed by Tesla on Wednesday.
“This new record level of the S&P 500 is sustainable as long as earnings meet expectations,” said Steve Sosnick, Chief Strategist at Interactive Brokers.
“If, on the other hand, we find out that the market has either gotten ahead of itself … or we get guidance from some of these companies that doesn’t match the bullish sentiment that’s being priced into them, that can be a real risk.”
Any discrepancy between market expectations and actual corporate performance or guidance could introduce volatility and risk to the current bullish sentiment.
(With inputs from agencies)

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