S&P 500 Set for Record High Amid Tech Surge and Fed Watch

The S&P 500 is poised to hit a record high, driven by a surge in chip stocks and widespread anticipation of a Federal Reserve rate decision. Tech earnings, including those from Nvidia and Intel, are under the spotlight as investors seek guidance from Federal Reserve Chair Jerome Powell.

The S&P 500 was on the brink of reaching a new peak on Wednesday, fueled by strong performances in the chip sector and anticipation of significant earnings reports from major tech companies. Investors eagerly awaited the Federal Reserve's rate decision, with futures on the benchmark index indicating a likely record high at 7,022.5 points.

In premarket trading, chip stocks such as Nvidia, Intel, and Microchip Technology saw impressive gains, buoyed by favorable financial reports from companies like SK Hynix and ASML. The Federal Reserve was set to meet later in the day, with widespread expectations of maintaining current rates, keeping observers keen to decode the central bank's future policy direction.

Despite prior market volatility stemming from geopolitical tensions, optimism has resurfaced as the earnings season unfolds. Attention turned toward tech giants like Meta, Microsoft, and Tesla—the 'Magnificent Seven'—whose reports could further influence market dynamics. Investor scrutiny on AI-related spending remains high as hefty valuations prompt reevaluation of capital allocations in tech sectors.

(With inputs from agencies.)