S&P 500 and Nasdaq surge to record highs after AI chipmaker rally
The S&P 500 and Nasdaq reached record highs driven by a surge in AI chipmaker stocks and optimism regarding Federal Reserve interest rate policy. Despite these gains, the broader economy faces challenges including high bond yields and persistent consumer inflation.
Why it matters
Record stock market performance amidst economic instability signals strong investor confidence in the AI sector despite broader macroeconomic concerns.
A trader on the stock exchange floor. A trader on the stock exchange floor. Stock markets S&P 500 and Nasdaq surge to record highs after AI chipmaker rally S&P tops 7,800 for first time in history as investors optimistic despite signs of instability in US economy
Prefer the Guardian on Google The S&P 500 and Nasdaq closed at a record high after a rally around AI chipmakers and a dip in US treasury yields.
At market’s close, the S&P 500 was up 0.58%, topping 7,800 for the first time in its history. The tech-heavy Nasdaq index rose 0.45%, while the Dow, which is slightly down from its record high in August, climbed 0.49%.
Investors appeared optimistic after recent developments for chipmakers including Marvell Technology, Advanced Micro Devices and Broadcom that showed growth in the markets for the chips used to power AI.
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