US Stock Market Hits Record Highs Amid Tech Company Gains

The Nasdaq and S&P 500 hit record highs on Wednesday, driven by strong performances from tech giants like Nvidia and Apple. The S&P 500 crossed the 5,600 mark for the first time, fueled by optimism around a potential interest rate cut in September. Federal Reserve Chair Jerome Powell’s comments on inflation also contributed to the market’s positive momentum.

The Philadelphia semiconductor index surged to a record high, with companies like Taiwan Semiconductor Manufacturing Co posting strong quarterly revenue. This news further boosted investor confidence in the tech sector.

With just a few large-cap stocks driving the market’s rally, there are concerns about a potential selloff if these companies’ earnings disappoint. However, for now, the S&P 500 and Nasdaq continue to climb, with gains of 18% and 24% respectively in 2024.

All 11 S&P 500 sector indexes saw gains on Wednesday, with technology and materials leading the way. Despite light trading volume, expectations of a rate cut by September have increased to 74%.

As we head into second-quarter earnings season, starting with major banks reporting on Friday, investors will be closely watching to see if high-flying tech companies can justify their valuations. Companies like Intuit and Illumina made headlines with layoffs and acquisitions, showing the dynamic nature of the market.

Overall, the US stock market is experiencing a period of growth and optimism, driven by strong performances from tech giants and positive economic indicators. Investors will be keeping a close eye on upcoming inflation data and earnings reports to gauge the market’s future trajectory.