S&P 500 index hits all-time high for the first time in two years, thanks to artificial intelligence business Economy

The S&P 500 index hit its first all-time high in two years this Friday, the result of optimism generated by artificial intelligence (AI), driven by momentum from chipmakers and other major technology stocks. Speculation of rate cuts soon by the Federal Reserve and big AI businesses has sent Wall Street’s benchmark indexes soaring, three weeks after ending 2023 higher. Today’s close confirmed that the S&P 500 has been in a bull market since closing lower on October 12, 2022, according to a measure that also puts that date as the end of the bear market.

The benchmark index breached the 4,800-mark, defying warnings that the rally is concentrated in a small group of stocks. According to Bloomberg, stocks rose on Friday as a decline in Treasury volatility remained a good sign for risk taking on Wall Street. Also helping was a report seen by many as “Fed-friendly”, which showed a combination of increased consumer confidence and lower inflation expectations. That is, the so-called soft landing of the economy combined with a sustained pace of spending and clear control of price increases, which would remove the threat of recession.

The S&P 500 rose 1.2% Friday, erasing this week’s losses. The Nasdaq 100 achieved better results with a strong technology component, Advanced Micro Devices broke a record and Nvidia, one of the firm leaders, led the rise. megacap, Stock-charging stock Nvidia rose 4.2% and Advanced Micro Devices (AMD) rose more than 7% after server maker Super Micro Computer raised its second-quarter profit forecast, which would send its shares up 36%.

Investors traded $31 billion worth of Nvidia shares and $23 billion worth of AMD shares, a larger turnover than any other Wall Street company, according to LSEG data.

Microsoft and Apple, the world’s two most valuable companies, rose more than 1% each.

Shares of chip makers have surged after Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, said on Wednesday it saw a surge in demand for high-end chips used in AI.

The yield on 10-year Treasury bonds was barely changed, while the dollar fell against a basket of benchmark currencies.

After hitting a low in October 2022, the S&P 500 has surged nearly 35% and today surpassed its previous closing high of 4,796.56 points. The gauge became the last of the three major US equity benchmarks to close at record highs. As of Thursday, the index had gone 512 days without breaking a record, the sixth-longest such period since 1928, according to Ned Davis Research. A year after hitting the new high, the index has risen 13 out of 14 times over that period, with an average increase of 13%.

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