Tech Stocks Propel S&P 500 Beyond 7,000 Amid AI Optimism

The S&P 500 surpassed the 7,000 mark for the first time, fueled by gains in chip stocks and investor anticipation of Federal Reserve decisions and Big Tech earnings. The market's rally is driven by AI optimism and strong corporate results, overshadowing geopolitical concerns. Traders stay alert for Federal Reserve cues.

For the first time, the S&P 500 has crossed the 7,000 threshold, driven by robust performance in chip stocks and investor focus on Federal Reserve decisions and Big Tech earnings. This psychological milestone underscores a market appetite strengthened by optimism in artificial intelligence and promising corporate results, despite ongoing geopolitical tensions.

Tech stocks led this upward trajectory as Nvidia registered a 1.8% climb, while Intel enjoyed a 9% surge, with Micron and Microchip Technology each gaining over 4%. SK Hynix, a major supplier for Nvidia, reported record profits, adding to the broader semiconductor index's rise.

Investors are particularly attentive to the Federal Reserve's upcoming rate decision, expecting no changes while closely watching Chair Jerome Powell for future policy direction. Although the focus on AI and earnings takes precedence, issues like a Justice Department inquiry involving Powell and potential leadership changes at the Fed also hover in the background.

(With inputs from agencies.)