S&P 500 Hits Record High as AI Stocks Soar

The S&P 500 index reached a new intraday high amid renewed investor confidence in AI stocks, influenced by predictions of future Federal Reserve rate cuts. This resurgence in AI stocks comes despite setbacks in November, largely driven by promising forecasts from companies like Micron Technology.

The S&P 500 index soared to a new intraday high on Wednesday, marking a significant resurgence in AI stocks and investor optimism about potential Federal Reserve rate cuts next year.

Following a period of apprehension over high tech valuations, the benchmark index saw a 0.2% increase, buoyed by positive earnings from Nvidia and encouraging forecasts from Micron Technology.

This recovery marks a stark contrast to November's 5.7% dip, showcasing the renewed interest in heavyweight tech and AI sectors as the year draws to a close.

(With inputs from agencies.)