S&P 500 notches record high as rate-hike worries ease

The S&P 500 achieved a record high on Thursday, reaching 7,798.99 points, after concerns about interest rate hikes eased. Technology stocks, particularly memory chip makers Sandisk and Micron Technology, led the gains, surging 13.7% and 4.2%, respectively. Microsoft and Meta Platforms also saw significant increases, with Microsoft adding almost 1% and Meta Platforms rising 2.8%.

CoreWeave, an AI cloud company, experienced a 1.3% decline. The rally was fueled by strong forecasts from companies like Microsoft and Amazon, reducing investor worries about heavy spending on AI data centers. Seven out of the 11 S&P 500 sector indexes rose, with communication services and real estate leading the charge. The Nasdaq gained 0.81% to 26,803.03 points, while the Dow Jones Industrial Average rose 0.13% to 53,839.99 points.

The S&P 500's performance marked a 14% increase for the year, while the Nasdaq gained about 15%. Despite positive earnings, Cisco Systems fell 8.4%, as investors were disappointed by its revenue forecast. The probability of the Federal Reserve keeping interest rates unchanged at its September meeting stands at 63%, according to CME's FedWatch tool.

Brent crude oil futures fell by about 2%, closing at US$87.07 a barrel. Netflix saw a 5.4% increase following billionaire investor Bill Ackman's new holding in the streaming company, while Tapestry shares plunged over 16% due to a muted annual revenue growth forecast. Dell Technologies and HP both saw gains, advancing 2.1% and 6.9%, respectively, after Lenovo's quarterly results surpassed expectations.