In a momentous session, the S&P 500 and Nasdaq surged to record highs on Tuesday, bolstered by semiconductor and megacap stocks. The upward momentum came as Federal Reserve Chair Jerome Powell testified before Congress, hinting that more positive economic data could pave the way for interest-rate cuts.
Key players in the tech sector led the charge, with AI-chip giant Nvidia soaring 4%, while Applied Materials and Micron Technology climbed 2% and 3%, respectively. The Philadelphia SE Semiconductor index also hit a record high. Heavyweights like Alphabet, Apple, Meta Platforms, and Amazon.com posted gains, pushing the S&P 500 Information Technology Index to an all-time high.
Despite these gains, the Dow Jones underperformed, dropping 0.38%, largely due to a 2% fall in Salesforce. Powell indicated that inflation remains above the desired 2% target but has shown signs of improvement, strengthening the likelihood of future rate cuts. Investors are eagerly awaiting this week’s inflation data and the start of the second-quarter corporate earnings season.
(Disclaimer: With inputs from agencies.)