The S&P 500 increased Wednesday to a unique record, breaking above 5,600 for the first time, as a sharp increase in semiconductor stocks led the demand higher.
The broad market index popped 1.02%, closing at 5,633.91, and notching a seventh straight day of profits. The Nasdaq Composite advanced 1.18%, also striking an all-time high and finishing at 18,647.45. It was the 37th record finish in 2024 for the S&P 500, and the 27th for the tech-heavy Nasdaq. The Dow Jones Industrial Average joined 429.39 points, or 1.09%, to finish at 39,721.36.
Chip stocks were among the biggest winners of the period. Taiwan Semiconductor added 3.5% after revenue from April to June came in ahead of Wall Street calculates. Peer chip firm Qualcomm ticked longer by 0.8%, and Broadcom increased about 0.7%. Artificial intelligence darling Nvidia enhanced 2.7%.
Those actions come as investors await fresh inflation figures on Thursday with the publication of the June consumer price index report. The data indicates comments from Federal Reserve Chair Jerome Powell on Tuesday and Wednesday that have fueled investor hopes for a rate end in the second half of the year.
“There are some items out there that look frothy, but there’s no prediction yet that earnings can’t help those valuations,” said Scott Welch, chief investment officer at Certuity. “It’s significant to remember that seven to 10 stocks constitute 30% to 40% of the S&P 500 demand cap … if there’s any slippage it’s going to have an increased impact.”
Economists polled by Dow Jones expect a 0.1% month-over-month increase and a 3.1% year-on-year profit. Core CPI, which excludes power and food expenses, is predicted to have expanded 0.2% from the prior month and 3.4% from a year earlier. The creator cost index is set for release Friday.
Traders on Wall Street forecast the Fed’s foremost rate cut to reach as soon as September, less than 7 weeks from the US presidential election.
But Fed Chair Powell reiterated Wednesday that the central bank wouldn’t create decisions dependent on political terms, even as September’s rate cut decision could affect the stock demand and the broader public’s attitudes tied to the economy.
Powell, who appeared before the House Economical Services Committee on Wednesday, despite his testimony in the Senate on Tuesday, responded to a Republican lawmaker’s query about the possibility for the Fed to finish interest rates in September.
He stated: “Our undertaking is to make decisions when and as they require to be made, depending on the data, the incoming information, the evolving outlook and the balance of dangers, and not in consideration of other terms, and that would include political terms.”
Powell said the Fed has a record of making those calls, even during election years. “Anything we do will be very well structured. It’s just not appropriate for us to get into the corporation of thinking about election procedure at all, one way or the other.”
US stocks operate near all-time highs on Wednesday after Federal Reserve Chair Jerome Powell kept rate-cut hopes still alive following the begin of his semiannual testimony to Congress.
The S&P 500 edged up by an estimated 0.2%, coming off a 36th-record close for the factors. The Dow Jones Industrial Average hugged the flatline, while the tech-heavy Nasdaq Composite increased about 0.4%.
Powell will come into action before the House later this morning, with investors eyeing further works on the Fed’s policy stance. A primary inflation news, due Thursday, will also be top of mind.